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Guide • Working capital

Sale‑leaseback financing: how it works

A sale‑leaseback lets you turn owned equipment into liquidity—while keeping the equipment in service. It’s often used to support growth, smooth seasonality, or add breathing room without pausing operations.

Updated: 2026‑01‑26 Read time: ~4 minutes

What is a sale‑leaseback?

In a sale‑leaseback, you own equipment outright (or with little remaining financing). A financing partner purchases the equipment from you, and you lease it back. You receive funds and continue using the equipment, while making agreed lease payments.

Why businesses use sale‑leaseback

  • Working capital: free up cash for payroll, materials, fuel, or growth.
  • Seasonality: smooth cash flow when revenue is uneven.
  • Expansion: use freed capital for another asset, a new crew, or a fleet addition.
  • Stability: create a predictable payment schedule instead of tying cash up in equipment.

What lenders typically look for

  • Equipment quality & marketability: age, condition, and resale market matter.
  • Proof of ownership: clear ownership and documentation.
  • Use case: equipment should be revenue‑generating in your business.
  • Business profile: time in business and cash‑flow context help lenders get comfortable.
Reality check: not every asset qualifies for sale‑leaseback. If you send the equipment details, we can quickly tell you whether it’s realistic.

How the process usually works

  1. Share equipment details (make/model/year/serial, condition, photos if available).
  2. We assess fit and confirm documentation required.
  3. Approval & valuation (lender aligns value and terms).
  4. Documents & funding (sale docs + lease docs, then funds released).

Thinking about sale‑leaseback?

Send the asset details and what you’re trying to accomplish. We’ll confirm fit and the cleanest structure.

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FAQ

Common sale‑leaseback questions.

Can I do a sale‑leaseback if the equipment still has a loan on it?

Sometimes. It depends on payout details, lender rules, and the asset. Send the basics and we’ll advise.

How much capital can I unlock?

It depends on the equipment’s value, age, condition, and lender policy. A realistic assessment requires the equipment details.

How fast can a sale‑leaseback close?

Timelines vary based on documentation and the lender. Clean equipment documentation and clear ownership help deals move faster.

Is a sale‑leaseback the same as refinancing?

They’re related. Both aim to unlock liquidity from equipment. The best fit depends on your situation and the lender’s structure.