How Equipment Lease Buybacks Work

When you work in construction, manufacturing, retail or several other industries, you rely on your equipment to handle daily operations and to get the job done so you can turn a profit. However, this equipment can be extremely expensive in some cases, and if you’re the owner of a company that relies on your machinery, it’s likely that you have a huge amount of your money wrapped up in payments.

You need the equipment on your side so selling it is out of the questions, but you also need the money in order to help your business grow and develop further. This is, of course, problematic. Or at least, it’s problematic if you don’t know about equipment lease buybacks and how they work.

What They Are

Simply put, equipment lease buybacks provide business owners like yourself to take advantage of the value of the assets you already own. Rather than selling your equipment to an unknown third party or simply finding your cash elsewhere, you have the option to sell your equipment to a leasing company for its full value in its current condition. While you take advantage of the cash you gain through this transaction, you can immediately lease the equipment you just sold using a portion of your income, so you won’t have to slow down your business operations.

How it Works for Your Business

Overall, this arrangement is a very beneficial one for most businesses, and works to make your company a better, more profitable place in a few key ways. The first big benefit is that you don’t have to tap into your existing cash flow to get more money. You’ll be depending solely on your equipment-based assets, which will remain in your control at the end of the day. Therefore, you really aren’t giving anything up during this transaction.

When it comes to future expenses, this sale saves you a pretty penny. You’ll no longer be held accountable for maintenance or repairs on the equipment you’ve sold. Therefore, if you happen to experience any issues, it will be up to the leasing company you’ve sold the machines to to invest in the repairs you need, regardless of how big or small they might be. This also helps you avoid the problem of your equipment becoming obsolete – once this initial lease is up, you can change things up with your lending company and get a better model of your current equipment if you’d like.

Equipment lease buybacks have some huge advantages to offer the modern business, and several benefits you simply can’t afford to miss out on if you work with big equipment pieces.

SHARE IT:

Related Posts

Comments are closed.