When this service may fit
A useful starting point for these transactions
- Eligible equipment owned free and clear
- Assets with supportable market value
- Working-capital or growth needs
- Debt consolidation tied to a clear plan
- Businesses with established operating history
- Commercial—not personal—equipment
How equipment refinancing works
In a refinance, a lender advances funds against eligible equipment and takes security in the asset. In a sale-leaseback, the equipment is sold to a financing company and leased back under a commercial agreement.
The amount available is not simply the original purchase price. Current market value, age, condition, ownership, liens and lender advance limits all influence the result.
Equity and ownership must be verified
Provide serial numbers, purchase documents, registrations where applicable, payout statements for existing liens, photos, hours or kilometres and maintenance information. An appraisal or inspection may be required.
Equipment already heavily financed, very specialized, obsolete, in poor condition or difficult to value may not provide usable equity.
Use the liquidity with a clear purpose
Lenders generally want to understand why cash is being released and how the new obligation fits the business. Growth, seasonal working capital, contract mobilization or restructuring can each require different context.
Refinancing is not automatically a solution to cash-flow pressure. Review cost, security, term, tax and legal implications with qualified advisors.