Finance question
What is sale and leaseback of equipment?
Sale and leaseback is where you sell equipment you already own to a lender, then lease or finance it straight back, freeing up the cash tied up in it while you keep using the gear. It turns an asset you own into working capital without stopping work. It suits a business that is asset-rich but wants cash in the bank.
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The short answer
Turn owned gear into working capital
Plenty of businesses have real value locked inside machines they already own outright. Sale and leaseback unlocks it. You sell the asset to a lender at an agreed value, receive that money as cash, and finance the same asset back so it never leaves your yard. The gear keeps earning while the equity in it becomes usable capital.
It is a practical answer when the balance sheet is strong but cash is tight. Rather than take on unrelated debt, you draw on value that is already yours. Common uses are covering a tax bill, funding a new contract, buying more equipment, or simply steadying cashflow through a quiet stretch.
Because the deal is secured by a real asset you already hold, it can often be arranged with light documentation and moves quickly. Running across 40+ lenders means we can match the asset and the amount to a lender comfortable with that gear, then structure repayments around how the business earns.
Do you qualify?
What makes a leaseback fundable.
Gear you own
Equipment held clear, or close to it, that carries real value.
A need for cash
A tax bill, a new contract, stock or working capital to fund.
An active ABN
Sole traders and companies both qualify.
An asset still in use
Machinery, vehicles or plant you keep running day to day.
Why businesses use it
Cash without stopping work
The asset stays in service while its value comes back to you as capital.
Draw on what you own
You use equity already in the business rather than take on unrelated debt.
Fast and light
Secured by a real asset, these deals can move on limited paperwork.
A real example
An earthmoving operator owns an excavator worth about $120,000, held clear, but needs cash for a large new contract. A sale and leaseback releases most of that value as working capital while the machine stays on site, and repayments are set to suit the contract income. Illustrative only.
Common questions
Frequently asked questions
Do I keep using the equipment?
Yes. That is the point. You sell the asset for cash and finance it back, so it stays in your business the whole time.
Does the asset need to be owned outright?
Usually it should be held clear or close to it. The equity you hold in the gear is what the cash is drawn from.
What can I use the money for?
Common uses are a tax bill, a new contract, buying more equipment, or steadying cashflow. It becomes working capital for the business.
Is it fast to arrange?
Often, yes. Because it is secured by an asset you already own, it can move quickly and on light documentation, subject to lender assessment.