When does an SLB make sense?
A sale leaseback is the right tool when your business has equipment equity but needs liquidity. Common triggers we see every month:
- Funding a major job that requires upfront materials and labour
- Bridging a slow-billing season or extended customer holdback
- Acquiring a competitor or buying out a partner
- Consolidating high-cost short-term debt onto a cleaner schedule
- Building working capital reserve before a growth push
How the structure works
A sale leaseback is straightforward but always custom-fit. The headline mechanics are the same on every file:
- We obtain a fair-market appraisal of the equipment
- Lender purchases the equipment outright (you receive the proceeds)
- Same equipment is leased back to your business on a monthly schedule
- You retain full possession and operating use throughout
- At end of term you can buy it back for a $10 or fair-market option
Equipment we will leaseback
Almost any commercial asset with documented value can be the subject of a sale leaseback:
- Highway tractors and vocational trucks
- Trailers (reefer, dry van, flatbed, specialty)
- Heavy construction equipment
- Aggregate, crushing, and processing plant
- Manufacturing equipment
Frequently Asked Questions
Do I lose my equipment in a sale leaseback?
No. The equipment stays in your possession and in service throughout the term. The transaction is purely on paper — title transfers, but the unit never leaves your yard.
How is the equipment value established?
A third-party appraisal or recent comparable sales are used to set the fair-market value. We work with appraisers familiar with each asset class to ensure the valuation is defensible.
Can I sale-leaseback equipment that still has a loan on it?
Yes — the existing loan is paid off as part of the closing, and the residual cash from the new lease is wired to your business.
Is the cash from a sale leaseback taxable?
Tax treatment depends on book values and your accountant's structure. Generally the lease payments are deductible operating expenses and the proceeds offset the asset book value. Speak with your CPA before closing.
What documents are usually required?
For applications under $250,000 the file is typically minimal — a one-page application and basic ID. Above $250,000 we generally request two years of business financial statements and the most recent three months of bank statements. Specific lenders may also request equipment quotes, articles of incorporation, or a personal net-worth statement.