What is a Lease Buyback
"Your business generates money by using equipment not owning it"
In the simplest terms a Lease Buyback is an opportunity for a Company to access the equity in an asset or assets that are already owned.
Benefits of Factoring
A Company wants to buy a new Widget Machine to add to the 2 they already own and donít want to tie up their Operating Line of Credit to buy it. The new machine is $10,000 so they decide a Lease Buyback is a great option for them. The finance company agrees their business plan makes sense for the purchase and appraises the two existing machines at $6,500.00 current market value. A lease is established on the 2 existing machines for the $10,000.00 the Company needs to make the purchase and grow their business.
Uses for Leaseback Equity
- Does not tie up an operating line of credit
- Does not require a loan from a bank
- Deals that would not fit into a bankís structure can be done
- This can be much quicker and easier than dealing with a bank
- The lease can potentially offer a significant tax benefit over depreciating an asset
- Typically up to 80% of equity can be accessed
Almost any type of equipment can fit into a Leaseback scenario including: Industrial equipment, Machinery, Medical equipment, Construction equipment, Trucks & Transport equipment. If the asset that is owned has a resale value then a Lease Buyback is likely available.
Contact us to find out if a Leaseback is the solution for your needs