Turn Your Business Equipment into Immediate Working Capital
At Overlap Capital, we help business owners unlock the hidden value in their operations. One powerful yet underutilized strategy is the Equipment Sale Leaseback—a financing solution that allows you to convert your existing equipment into fast capital without interrupting your day-to-day operations.
In a sale leaseback, your business sells equipment it already owns to a lender or funding group. You then lease the equipment back under a fixed-term agreement, retaining full operational use while freeing up equity that’s tied up in that asset. It’s a strategic move for companies looking to increase liquidity without taking on traditional debt or giving up control.
How It Works
- You Identify Eligible Equipment: This can include vehicles, machinery, medical devices, manufacturing equipment, office tech, and more—typically assets with good remaining useful life and resale value.
- We Arrange a Sale to a Funding Partner: Your equipment is sold to a capital provider, usually for 60–85% of its current appraised value.
- You Lease the Equipment Back: A lease is structured, often between 24–60 months. You make monthly payments, similar to equipment financing, but with unique tax and cash-flow advantages.
- Optional Buyback: At the end of the lease term, many companies choose to repurchase the equipment at fair market value or a nominal fee.
What You Can Use the Funds For
There are no restrictions on how the funds are used. Whether you need working capital, marketing dollars, payroll support, or want to invest in expansion—this product gives you the freedom to choose.
Key Benefits (Pros)
✅ Preserve Daily Operations
You retain use of your equipment—there’s no downtime or disruption to your workflow.
✅ 100% Tax Deductible Payments
Lease payments may be fully deductible as business expenses, potentially lowering your taxable income.
✅ Fast Access to Capital
Most deals can fund within 5–10 business days after appraisal and documentation.
✅ Improves Cash Flow
Unlock idle capital tied up in assets and reinvest it into growth or operations.
✅ No Usage Restrictions
Use the funds however your business sees fit—no limitations, no earmarks.
✅ Credit-Friendly Alternative
Often available to businesses with average or recovering credit, since the transaction is asset-based.
Considerations (Cons)
⚠️ You No Longer Own the Asset
The equipment becomes the property of the lessor until the lease ends or you repurchase it.
⚠️ Depreciation Shifts
You lose the ability to claim depreciation as a tax benefit—though the lease payment deduction usually offsets this.
⚠️ Must Have Unencumbered Equipment
Your equipment must be fully paid off and in good working condition.
⚠️ Not Ideal for Obsolete Assets
Outdated, low-value, or highly specialized equipment may not qualify.
Industry Guidelines for Success
To get the best terms on a sale leaseback, businesses should:
- Own equipment free and clear, with a resale value of at least $25,000
- Maintain accurate asset records and maintenance logs
- Ensure the equipment is less than 10 years old and in good working condition
- Be able to afford monthly lease payments comfortably
- Work with a trusted capital partner who understands your industry and equipment use
Is This Right for You?
If your business has valuable equipment but needs liquidity fast—Equipment Sale Leaseback may be a smart, flexible funding solution. Whether you’re scaling, stabilizing, or retooling your operation, Overlap Capital is here to unlock the power of the assets you already own.
Tap into your equipment. Free up cash. Stay in control.