Need CASH NOW? How about a Sale-Leaseback?
Equipment Sale-Leaseback – Yes, you heard me right; at Equipment Leases Inc, we can help any business get through a downturn or tight cash flow situation and do it fast. The reasons that any company might experience a cash-flow problem are varied and diverse. Still, if you’re on the administration end of a cash crunch and don’t want to take a traditional loan or use your line of credit, then we should probably talk.
The Sale-Leaseback financing progam is simple and applies to almost any company. We buy your equipment and then lease it back to you for 2, 3, or 4 years. You keep the equipment and use it as you have every day, and at the end of the term, you have a clear title once again.
Samples of where a sale-leaseback financing may be perfect
Manufacturing – A medium-sized manufacturer of a famous child’s toy in the mid-west receives a massive order from a long-term client for twice their average capacity. Rather than turn the order down, the savvy owner does a sale-leaseback on $500,000 of his CNC machines and uses the proceeds to add more personnel for a 3rd shift fulfilling the order and now able to expand and take on more clients.
Food Packaging – A small packager of poultry products on the east coast hears that a competitor had experienced a downturn and offering his business for sale. Recognizing an opportunity to capture market share and bring on new customers and all of their production equipment was too good to pass up, but how can he pay for it? Solution – do a sale-leaseback on $1,000,000 worth of closing machines, capping machines, and a giant vacuum packaging machine. The transaction closed, and now they have doubled in size with a very bright future ahead.
Our Sale-Leaseback financing can cover small transactions of $100,000 up to huge $50-million deals with large amounts of equipment involved. Regardless of the size of the transaction or the reason a business needs a cash infusion matters not, all are treated the same way with a professional courtesy uncommon in the finance world.
The process of applying for a sale-leaseback of your existing equipment is simple; we are very transparent about what we would need from you to move your deal to approval and funding quickly. Here is a short-list of what you would want to have ready:
- Complete an application with signatures from any owner with over 20% of the company.
- A complete list of the equipment you would like us to consider, including original invoices, recent appraisals, pictures of the equipment with model and serial numbers.
- What is the total dollar amount you would like to get on the equipment
- A statement of use of proceeds is always a good idea to get comfortable with why you want the new capital in the business.
- Bank statements and possibly a complete set of financials for the larger projects.
Regardless, an Equipment Sale-Leaseback for any business can potentially be the ideal solution to solve a temporary cash-flow problem, fund growth or acquisitions, expand capacity, buy out a partner, or any of 100 varied reasons a company needs capital.
Tell us what your experience has been with this type of financing?