Sale Leaseback Financing in Canada

Sale Leaseback Financing in Canada

Your Small Business’s Secret Weapon

Small business owners in Canada are no strangers to the juggling act of managing finances. Between payroll, inventory, and the constant need for new equipment, cash flow can feel like a never-ending tightrope walk. But what if there was a way to unlock the hidden value in your existing assets while also injecting a much-needed cash infusion into your business?

Enter: Sale Leaseback financing.

What is Sale Leaseback Financing?

At its core, a sale leaseback is a clever financial maneuver that allows you to sell your owned equipment (or other physical assets) to a leasing company like Thomcat Leasing. Sounds counterintuitive, right? Here’s the twist: you then lease that same equipment back from the company, continuing to use it for your daily operations.

It’s like selling your car to a friend and then renting it back from them – except with much more significant financial benefits for your business.

Why Would a Canadian Small Business Owner Use a Sale Leaseback?

Let’s break down why you might want a sale leaseback into a few key reasons:

  1. Immediate Cash Injection: Selling your equipment frees up a substantial amount of capital. This can be used for anything from expanding your business to covering unexpected expenses or even taking advantage of a new opportunity.
  2. Improved Cash Flow: You now have predictable monthly lease payments. This makes budgeting and financial planning significantly easier.
  3. Tax Benefits: Lease payments are a 100% tax writeoff, which can offer additional savings for your business.
  4. Off-Balance-Sheet Financing: Sale leasebacks aren’t treated as debt for accounting purposes, which can make your business look more attractive to potential investors or lenders.
  5. Flexibility: You can often customize the lease terms to best suit your business’s unique needs.

When is Sale Leaseback Financing NOT the Right Fit?

While sale leasebacks are incredibly versatile, they might not be ideal for every situation. Here are a few scenarios to consider:

  • Short-Term Equipment: If you only need equipment for a short period (shorter than 3 years), renting might be a more cost-effective solution.
  • Rapidly Depreciating Assets: If your equipment’s value is expected to drop significantly over time, a sale leaseback might not be as beneficial or even possible.
  • High-Growth Businesses: Companies experiencing rapid growth might outgrow their equipment too fast, and thus might be better off just leasing more powerful equipment.

Is Sale Leaseback Right for Your Canadian Business?

If you’re a small business owner in Canada looking to boost cash flow, improve your financial standing, and gain access to the capital you need to thrive, sale leaseback financing could be your hidden ace. Whether you’re in construction, agriculture, or any industry that relies on equipment, this financial tool could be the game-changer you’ve been searching for.

Get an Instant Equipment Leasing Estimate from Thomcat Leasing

Curious to see how a sale leaseback could work for your specific business? Thomcat Leasing specializes in providing fast, stress-free lease-to-own financing on just about any physical asset your business needs. With less paperwork and flexible lease terms, we’re your go-to partner for equipment leasing solutions. Get your instant lease estimate today and unlock your business’s full potential.

Instant Lease Payment Estimate!

By Published On: June 25, 2024Categories: Equipment Leasing