graphic savings group blog

What is an Equipment Sale Leaseback?

If you're asking what an equipment sale leaseback is, you're not alone. A lot of people have never considered an equipment sale leaseback and are missing out on a flexible source of capital that could help when resources are stretched thin.

An equipment sale leaseback is when a company sells an asset, such as business equipment it is currently leasing, for cash. That asset is then leased back to the company by a leasing company under a new contract. The leased equipment never leaves the premises of the company, in fact, it usually remains under the same service. As an added benefit, the seller retains ownership over the asset at the end of the lease term.

An equipment sale leaseback helps a company improve its working capital situation and make sure that it is using assets efficiently. The monthly payments can usually be written off for tax purposes and are independent of bank credit lines. Office equipment, Digital copiers, Warehouse equipment, and even company vehicles can all be part of a sale leaseback program.

If you're considering an equipment sale leaseback, please consider talking to the Graphic Savings Group.

Common Questions about Equipment Leasing

In ongoing effort to answer questions about equipment leasing in this space, we're looking at three common questions that we get asked on a regular basis by companies looking to lease copiers or industrial equipment.

Does all equipment have to come from the same vendor?

The short answer is no. Under the terms of an equipment lease, you can get copiers, industrial equipment, medical equipment, or whatever your business requires from multiple vendors and then bundle the equipment into a single lease. It's a convenient way to avoid paying multiple vendors and can simplify the budgeting and accounting process.

Can I skip payments or defer payments?

Copier leases, for example, can be structured to increase the payment amount over the life of the lease or can have intermittent payment schedules based on the cash flow expected by a business.

Can I transfer a lease?

Unless stipulated by contract, all equipment leases are transferrable. The lessee must have an application approved and credit that is acceptable.

If you need answers to other questions or information about a copier lease, please consider Graphic Savings.

Did you know?

80 % of all companies lease some or all of their equipment (figures provided by the U.S. Dept. of Commerce)