Allows you to use your equipment to get capital.
Sale and leaseback financing is a unique and effective method for generating capital for your business needs. You use your equipment to get the capital. There are many potential benefits for your business if you choose this option.
With a sale and leaseback you can continue to use your equipment, so productivity never slows down, and your revenue should remain constant. The extra capital you get can be applied to expanding your business and increasing revenue as it can be used for any purpose.
Businesses that use this as a capital option can recover up to 37% in tax savings. Since you will be leasing your equipment back the complete monthly payment is 100% tax deductible. Being approved for sale and leaseback financing is not extremely difficult as there is no additional collateral necessary besides your equipment to get this form of financing. There is also the balance sheet benefit because having assets that you pay taxes on converted into contingent liabilities may also lower taxes.
More capital is freed up for businesses that do a sale and leaseback because the equipment is no longer being financed at a regular bank, nor is it cutting into the lines of credit you have with the banks. You can use those extra lines of credit to expand your business the most effective way possible. There are flexible terms that can fit your businesses budget. These terms can be 36, 48, and 60 months to best match your needs.