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Products · Equipment Leaseback

Cash out the equipment you already own.

If your business owns equipment free and clear, that value is sitting idle. An equipment leaseback releases it as working capital while the machine stays where it is and keeps earning. Monthly payments, terms to 60 months, and no prepayment penalty.

600+
FICO
2+ yrs
Time in business
Up to 60 months
Monthly payments
No penalty
Early payoff with timely payments
How it works

Equity you already built, released as cash.

Most growing companies reach a point where the balance sheet looks strong but the bank account does not. Equipment gets paid off over years, and the value that accumulates in it is real but hard to reach. A leaseback is how you reach it.

You pledge equipment your business owns outright as collateral, and receive a lump sum against its value. The equipment must be unencumbered, meaning it is fully paid off with no existing liens against it, because the transaction depends on that clear title.

The structure is an Equipment Finance Agreement. That distinction matters: unlike a traditional sale-leaseback where the asset is sold to a funder and rented back, here ownership never transfers. The equipment stays on your books, you keep operating it exactly as before, and a security interest is released when the balance is paid.

Proceeds are unrestricted. Businesses most often use a leaseback for working capital, payroll through a slow season, a job that needs mobilizing before it pays, or refinancing more expensive short-term debt.

What qualifies

Not every asset works as leaseback collateral.

Leaseback collateral has to hold value independently and have a resale market a funder can rely on. Some categories are excluded outright, so it is worth checking before you apply.

Eligible equipment

Owned outright, no liens

  • Transportation
  • Construction
  • Materials handling
  • Machine tools
  • Manufacturing
  • Livery
  • Industrial
  • Vocational
  • Packaging
  • Medical equipment

Excluded equipment

Not eligible as leaseback collateral

  • Class 8 sleepers
  • Forestry equipment
  • Commercial printers

Excluded here does not mean we cannot help. These categories are often financeable through a purchase or refinance instead, so call and we will point you at the right structure.

The comparison that matters

A leaseback versus a merchant cash advance.

Businesses needing fast capital are usually shown a merchant cash advance first. If you own equipment outright, a leaseback is generally the cheaper and less disruptive way to raise the same money.

 
Equipment leaseback
Merchant cash advance
Payment cadence
Monthly
Daily or weekly debits
Secured by
Equipment you already own
Future receivables
Typical term
Up to 60 months
Commonly 6 to 18 months
Early payoff
No penalty with timely payments
Factor rate is usually owed in full
Cost of capital
Generally lower
Generally higher
Effect on cash flow
One predictable monthly payment
Continuous draw on daily deposits

General comparison of how these products are typically structured. Actual pricing and terms vary by transaction, and an advance may still be the right answer when there is no unencumbered equipment to pledge.

1

Send the equipment list

A schedule of what you own free and clear, with year, make, model, and serial numbers where you have them.

2

We value it and structure the deal

The equipment is valued against its resale market and reviewed alongside your credit profile to size the amount and term.

3

Sign and receive funds

Documents are electronic and funds are disbursed within days of approval. The equipment never leaves your yard.

Common questions

Answers before you apply.

What is an equipment leaseback?

An equipment leaseback lets a business raise working capital against equipment it already owns outright. You pledge the equipment as collateral and receive a lump sum against its value, repaid in monthly payments over a term of up to 60 months. The equipment stays in service the entire time.

Does the equipment have to be paid off?

Yes. The equipment must be unencumbered, meaning it is fully paid off with no existing liens against it. If there is a balance remaining with another lender, a refinance may be the better route, and we can look at that instead.

Do I lose ownership of my equipment?

No. The transaction is structured as an Equipment Finance Agreement rather than a true sale-leaseback, so ownership never transfers. The equipment stays on your balance sheet and in your operation, and the security interest is released once the balance is paid.

What credit profile is required for an equipment leaseback?

The program generally requires a 600 or higher FICO and at least two years in business. Because the transaction is secured by equipment you already own, the collateral carries meaningful weight in underwriting alongside credit and cash flow.

What can I use the money for?

Proceeds are unrestricted. Common uses are working capital, payroll through a slow season, mobilizing for a job that pays later, buying inventory or materials, and refinancing more expensive short-term debt such as a merchant cash advance.

How fast can a leaseback fund?

Funds are typically disbursed within days of approval. The pace usually depends on how quickly the equipment schedule and supporting documentation come together, so having your list of owned equipment ready speeds things up considerably.

Find out what your equipment can release.

Send us a list of what you own free and clear and we will tell you what is realistic, with no obligation.

Apply now