Sale Leaseback Lender

sale leaseback lenderThe right sale-leaseback lender may be tough to find.  In addition, it’s not a sexy business.  Furthermore, it’s not high velocity and quick turns like a cash advance company.  However, it’s also not stodgy and condescending like most bank institutions.  It’s right in the middle.  Just like the program itself.  Rates and the time to funding are somewhere between banks and unsecured lenders.  The middle is a nice place to be.  For more information, see here if you’re still asking, “Why you should do a sale-leaseback”.

There are only a handful of solid sale and leaseback lenders in the country.  In addition, some advance funds at up to 80% of the forced liquidation value of the equipment.  In contrast, others only have up to 50% of the forced liquidation value.  Like inventory lenders, most will want their appraisal ordered through a third party of their choosing.  However, some will allow the borrower to find one and order it directly.  Most will do fixed-rate financing.  In contrast, some offer floating rates.  In addition, some lenders rely solely on the resale value of the equipment and don’t care about credit and/or cash flow.  Others dig into the whole package and look at everything including the “story” behind a deal. It is a great opportunity to get cash from your equipment.

What a Sale and Leaseback Lender wants:

  • First, provide a list of unencumbered equipment that includes the year, make, model, hours/miles, and approximate value of each piece
  • Next, proof that the borrowing company indeed owns the equipment and can pledge as collateral
  • Then, proof that the person signing the documents to pledge the collateral is an authorized signer of the company
  • Finally, correctly executed documents that both sides understand to ensure a smooth funding of the borrower

A sale and leaseback lender may be the coolest type of money person you’ll meet.  Salt of the earth folks that like to see business owners succeed.