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Learn how a sale-leaseback converts owned equipment into cash while you keep using it. See process, costs, eligibility, examples, and alternatives in Canada.
A sale-leaseback lets you sell equipment you already own to a financing partner and immediately lease it back. You unlock cash now, keep using the asset, and choose a buyout at term end (e.g., $10, 10%, or FMV). See program details here: Refinancing & Sales-Leaseback.
Why businesses use it:
If you’re weighing leasebacks against other options, compare Equipment Leases, Equipment Loans, and Business Refinancing.
Model scenarios in minutes with the calculator.
Sale-leaseback is a strong fit when you:
If you mainly need revolving purchasing power across the year, consider an Equipment Line of Credit. If receivables timing is your pain point, Invoice/Freight Factoring can complement a leaseback.
| Feature | Sale-Leaseback | Equipment Loan | Business Refinancing | Line of Credit |
|---|---|---|---|---|
| Cash today | High (advance on FMV) | None (asset already owned) | Moderate (term debt) | Revolving (as needed) |
| Monthly payment | Often lower (residual) | Higher (fully amortizing) | Varies | Interest on drawn balance |
| Ownership during term | Lessor holds title | Borrower holds title (lien) | Borrower holds title (lien) | N/A (revolving facility) |
| Speed | Fast | Moderate | Moderate | Fast once set up |
| Best for | Cash + lower payments | Lowest total cost to own | Debt consolidation/rate reset | Short-term gaps/opportunistic buys |
If total lifetime cost is your priority and you plan to hold the asset long-term, compare a straight equipment loan. If you want a lighter monthly and a clear buyout, a leaseback may fit better.
We also sell equipment directly—browse current units in Inventory.
Ownership proof or invoices, serial/VIN list with photos/condition, any lien statements, business details and recent bank statements, insurance details, and a simple use/maintenance plan. Our About Us page outlines our approach and credit-analyst team.
A site-prep contractor owned two loaders and a dozer outright but needed cash to staff a larger municipal job. Mehmi structured a sale-leaseback at a blended LTV, paid out a small lien, and wired net proceeds. The client chose a 60-month term with a 10% buyout to keep payments predictable. With cash for mobilization and payroll, they hit milestones, then later refinanced one unit to lower payments as receivables stabilized.
Is a sale-leaseback more expensive than a loan?
It can be. Leasebacks often lower the monthly via a residual; loans can produce a lower total cost to own. Price both using the calculator.
Can I finance taxes and fees?
Often yes. Many clients roll them in to preserve cash; others pay at closing.
What assets qualify best?
Mainstream, liquid equipment with strong resale depth. Check Eligible Equipment.
What happens if I have an existing lien?
We typically pay it out at closing and you receive the net proceeds. See Refinancing & Sales-Leaseback.
Can I buy back early?
Often yes, through scheduled early-purchase options. Confirm the buyout schedule up front.
What if receivables are the real problem?
Pair the leaseback with Invoice/Freight Factoring or a Line of Credit.
Ready to see numbers for your equipment? Run scenarios in the calculator and feel free to contact our credit analysts via Contact Us for a tailored proposal. We can also quote loans, leases, and business refinancing—and we sell equipment directly if you’re upgrading.
Are you looking for a truck? Look at our used inventory.
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