If you’re a manufacturer, you know that having the right equipment is essential to your success. But what do you do when you need working capital, may have less-than-perfect personal or business credit, and you have equity in your manufacturing equipment?
One option is to leaseback your manufacturing equipment. This involves selling your leased equipment to a third party and then leasing it back from them. This can give you the cash you need while still allowing you to use the equipment you need to manufacture your products.
There are a few things to keep in mind if you’re considering leaseback. First, you’ll need to find an equipment sale leaseback lender that matches your equipment and industry. Second, you’ll need to submit your equipment list for review to secure the transaction. And finally, you’ll need to make sure that you continue to make payments on your equipment lease so that you don’t default on the agreement.
If you’re looking for a way to free up some cash without selling your manufacturing equipment, an equipment sale leaseback may be a great option.