In short
A sale-leaseback is when a business sells a piece of equipment it already owns to a lender and immediately leases it back. You keep using the asset exactly as before, but you free up the cash that was tied up in it.
Instead of borrowing against equipment, you sell it and rent it back over an agreed term:
A sale-leaseback is a working-capital tool, not a last resort. It's most useful when the value is sitting in your equipment rather than your bank account — you own trucks or equipment free and clear, you need cash for expansion or a new opportunity faster than a traditional loan allows, and the equipment has reliable remaining useful life. Because you're converting an owned asset into a financed one, it works best when the capital it frees up earns more than it costs.
No. That's the whole point — you keep operating the equipment without interruption. Ownership transfers to the lender on paper, but the asset never leaves your business.
Yes. Most sale-leasebacks are structured with a buyout — either a nominal amount (like $10) or fair market value — so you can own the equipment again once the term ends.
General information only. This page is educational and does not constitute financial, legal, or tax advice. All financing is subject to credit review and lender approval. Rates, terms, and eligibility vary by applicant, asset, and lender, and are not guaranteed. Any figures or examples are illustrative. Please speak with a qualified advisor about your specific situation.