Sale Leaseback with Repurchase Option

What it is (plain language)

A sale-leaseback lets you sell equipment you already own to a financier for cash and lease it back so operations never pause. Adding an option to repurchase (fixed buyout, $10 purchase, 10% residual, or FMV/call option) gives you a clear path to own the asset again at or before term end. See program basics: Refinancing & Sales-Leaseback and Equipment Leases.

When it’s the right tool

• You need immediate liquidity for payroll, deposits, materials, or growth, but can’t lose use of the equipment.
  
  
• You want lower monthly payments via a residual/buyout versus a fully-amortizing loan.
  
  
• You prefer to preserve bank LOCs for working capital.
  
  
• You plan to re-own or upgrade at a defined point.
  
  

Model payments quickly with the calculator, or compare with equipment loans and business refinancing.

How it’s structured

• Fair Market Value (FMV): Establish current value of the asset being sold.
  
  
• Advance rate (LTV): Typical proceeds are a % of FMV (varies by asset/age/marketability).
  
  
• Term & rate: 24–72 months are common; payments based on cap cost, rate, and buyout.
  
  
• Repurchase option: Fixed (e.g., 10% or $10) or FMV; some structures allow early purchase windows.
  
  
• Covenants: Use, maintenance, insurance, and location controls are standard.
  
  
• Tax/accounting: Leases may be expensed while loans use interest + depreciation—confirm with your accountant, then test in the calculator.
  
  

Check eligibility by asset class: Eligible Equipment. If you also need liquidity on AR/inventory, combine with Asset-Based Lending or a Working Capital Loan.

Quick comparison

Explore alternatives: Business Refinancing and Equipment Leases.

Documentation you’ll need

Invoice or proof of ownership, serial/VIN list, photos/condition, lien statement (if any), recent bank statements, insurance details, and a simple use/maintenance plan. If you’re planning recurring purchases through the year, consider an Equipment Line of Credit.

Case example (Ontario hauler)

A fleet owned three tractors free-and-clear and needed cash to onboard drivers and fuel for new lanes. Mehmi arranged a sale-leaseback with a 10% fixed buyout over 60 months, wiring proceeds in 48 hours and keeping trucks on the road. Twelve months later, stronger cash flow allowed an early repurchase and a rate-down refinance on two units. If you’re upgrading instead, remember we also sell equipment directly—browse Inventory.

Industry fit

• Transportation & Trucking: tractors, day cabs, straight trucks, trailers. Learn more
  
  
• Construction & Contractors: excavators, loaders, lifts. Learn more
  
  
• Manufacturing & Wholesale: CNC, processing, material handling. Learn more
  
  

FAQ

Is the repurchase price fixed or FMV?
Both exist. Fixed (e.g., 10% or $10) provides certainty; FMV can be cheaper or costlier depending on market at term. Confirm in your lease.

Can I buy back early?
Often yes—via scheduled “early purchase options.” Ask for a written schedule before closing.

What LTV/proceeds can I expect?
Depends on asset age, hours/mileage, and resale depth. Newer, liquid assets advance higher. Start with Refinancing & Sales-Leaseback.

How do payments compare to a loan?
Leasebacks often yield lower monthly payments due to the residual; loans typically deliver lower total cost over life. Test both in the calculator.

What are the main risks?
Loss of title during term, covenants on use/relocation, and prepayment/buyout costs. If total cost is priority, compare a straight equipment loan.

What if I need more cash than the leaseback provides?
Blend with Working Capital or Asset-Based Lending.

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Ready to structure a sale-leaseback with a repurchase option? Feel free to contact our credit analysts via Contact Us, or run scenarios in the calculator.
Are you looking for a truck? Look at our used inventory.

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