Need funding but don’t want new debt? A sale-leaseback could turn your equipment into fast capital—while you keep using it. Learn how Texas businesses are using this underrated strategy to fund growth without draining their credit lines.
Unlocking Capital Without Sacrificing Control
As a fractional CFO with Overlap Capital, I’ve seen too many Texas businesses sitting on valuable equipment while straining for cash flow. The equipment sale-leaseback is one of the most underutilized tools in capital sourcing—allowing business owners to monetize existing assets without interrupting operations. If you’re looking for liquidity without adding new loans, this is a strategy worth exploring.
What Is an Equipment Sale-Leaseback?
An equipment sale-leaseback allows your business to sell owned equipment to a financing company, then immediately lease it back for continued use. You free up capital while maintaining full operational control. According to a 2021 Equipment Leasing and Finance Association (ELFA) report, nearly 79% of U.S. businesses use equipment financing, but few leverage sale-leasebacks—even though it offers one of the fastest routes to liquidity.
The Strategic Benefits at a Glance
- Immediate Cash Injection: Turn depreciating equipment into funding for growth, debt payoff, or payroll.
- Continued Equipment Use: Keep operations running without downtime or replacement costs.
- Debt Reduction & Balance Sheet Health: Use cash to pay off high-interest debt or improve financial ratios.
- Credit Line Preservation: Free up capital without using existing credit—ideal for maintaining flexibility.
- Tax Efficiency: Lease payments are often tax-deductible, which can improve your net position.
- Flexibility: Customize lease terms to fit your cash flow needs, with potential end-of-term purchase options.
- Monetize Existing Assets: Extract value from equipment that’s already in your possession.
Why This Isn’t Talked About Enough
Most lenders push new loans or working capital advances. But savvy financial planners know that sale-leasebacks are particularly powerful during expansion or restructuring phases. You avoid new debt, gain liquidity, and maintain control of your core assets. For asset-heavy industries—like construction, transportation, or manufacturing—this strategy is a hidden gem.
Conclusion: Let’s Maximize What You Already Own
There’s no reason your equipment should sit idle on your balance sheet when it can power your next move. At Overlap Capital, we help Texas business owners turn overlooked assets into active capital—without new debt, disruption, or delays. Give us a call and we’ll walk you through the process of unlocking liquidity through a strategic equipment sale-leaseback.
