Sale Leaseback Financing in Canada

What is a sale-leaseback?

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:

• Fast access to working capital without taking equipment offline
  
  
• Lower monthly payments vs. a fully amortizing loan (due to a residual)
  
  
• Ability to preserve bank lines for fuel, payroll, and materials
  
  

If you’re weighing leasebacks against other options, compare Equipment Leases, Equipment Loans, and Business Refinancing.

How a sale-leaseback works

• Valuation & eligibility: Establish fair market value (FMV) and confirm the asset fits our Eligible Equipment list.
  
  
• Advance & payouts: Receive proceeds based on a lender advance rate (LTV). Any existing liens are paid out at closing.
  
  
• Term, rate, residual: Structure monthly payments via term and a buyout (e.g., 10%).
  
  
• Funding & ongoing use: Funds are wired; you keep using the equipment under the lease.
  
  
• End-of-term options: Buy the asset, extend, or upgrade.
  
  

Model scenarios in minutes with the calculator.

When it’s the right tool

Sale-leaseback is a strong fit when you:

• Need cash now for deposits, new contracts, or seasonal ramp-ups
  
  
• Want lower monthly payments via a residual
  
  
• Prefer to preserve bank capacity (pair with a Line of Credit for operating expenses)
  
  
• Plan to re-own or upgrade at a defined point
  
  

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.

Sale-leaseback vs other financing options

Costs and what drives them

• Asset type/age: Mainstream, liquid assets typically advance higher and price better.
  
  
• Credit and time in business: Stronger files see better terms; startups can still qualify with structure.
  
  
• Term and residual: Longer terms and reasonable buyouts reduce monthly payments but affect total cost.
  
  
• Fees & taxes: Can often be financed to preserve cash.
  
  
• Covenants & usage: Standard maintenance, insurance, and location clauses apply.
  
  

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.

Industry fit and scenarios

• Transportation & Trucking: Tractors, day cabs, straight trucks, trailers. Keep freight moving while unlocking cash. Learn more
  
  
• Construction & Contractors: Excavators, loaders, lifts—fund mobilization and payroll. Learn more
  
  
• Manufacturing & Wholesale: CNC, processing, material handling—balance upgrades and working capital. Learn more
  
  
• Hospitality & Food Service: Ovens, refrigeration, POS—smooth seasonality. Learn more
  
  
• Farming & Agriculture: Tractors, harvesters—bridge cash cycles. Learn more
  
  

We also sell equipment directly—browse current units in Inventory.

Documentation checklist

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.

Case study: Ontario contractor unlocks growth

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 within 48 hours. 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.

Common pitfalls and how to avoid them

• Modeling the wrong cap cost: Confirm whether payments are based on FMV or the advanced amount.
  
  
• Ignoring fees/taxes: Decide whether to finance them or pay at closing—model both in the calculator.
  
  
• Mismatching term to useful life: Align the lease term to the equipment’s remaining life.
  
  
• Underestimating the buyout: Budget for the residual or plan to upgrade.
  
  
• Choosing structure before need: If cash timing is the issue, a blend of leaseback plus Asset-Based Lending or Working Capital may be optimal.
  
  

FAQ

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.

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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.