Sale Leaseback Financing For Construction Equipment

Are you interested in using the proper equipment for your construction business while raising the capital you need? If so, equipment sale leaseback financing may be for you. This type of financing can create excellent funds for you, and you can use them for things like growing your business or upgrading your equipment. You can even use them to pay a lender off if you need to. During the process, you will transfer your equipment title to a financial institution for a specific price that both parties have agreed on. You will then receive the funds from them and you will make payments to them in return.

As for the application process, it is actually much simpler as compared to other financing methods. With equipment sale leaseback financing, you will choose a good company to work with and send them an application that states the equipment you would like them to consider. If your equipment works and is relatively new, you may not need an appraisal. Once your application has been sent, the company will likely respond in a day or two. If you are approved, you can receive funds in one to two weeks. Because you are selling the equipment to the company then leasing it from them, the process is very straightforward.

Equipment sale leaseback financing comes with numerous benefits. It is especially advantageous for those who cannot qualify for a traditional loan. For example, you will be able to enhance balance sheets, supply tax benefits or finance growth. This method is a great way to raise cash for your business as well. In addition, in terms of taxes, with this type of funding, the transaction can be a taxable sale.

So how can you tell if your equipment qualifies for sale leaseback financing? You can get the funds if you don’t have open tax liens or bankruptcies, you’ve got a FICO score that is 620 or higher, your financial statements show that you have the ability to make lease payments, your business has been running for two years at the minimum and you are the equipment owner. When it comes to transaction size, difference companies have different minimums in place. Research a variety of companies to see which would best suit your needs. In addition, companies can specialize in a certain type of equipment, so make sure the one you choose works with construction equipment. Are you ready to get access to financing? Check out this method today.