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AILCO Equipment Finance Group

Financing solution

Equipment Sale-Leaseback

In a sale-leaseback, a business sells equipment it already owns to a finance company and leases the same asset back, keeping it in service while converting owned value into working capital. Eligibility depends on clear title, remaining useful life, and a supportable valuation. Accounting and tax treatment vary — confirm with your CPA before committing.

Short answer

In a sale-leaseback, a business sells equipment it already owns to a finance company and leases the same asset back, keeping it in service while converting owned value into working capital. Eligibility depends on clear title, remaining useful life, and a supportable valuation. Accounting and tax treatment vary — confirm with your CPA before committing.

Who this may serve

  • Businesses with owned, unencumbered equipment and a working-capital need
  • Operations that paid cash for equipment and want that capital back
  • Companies funding a project without disturbing a bank line
  • Fleets with strong residual value in existing units

How it works

  1. 1

    Step 1

    Identify the owned assets, purchase dates,

    Identify the owned assets, purchase dates, and original invoices if available.

  2. 2

    Step 2

    A specialist reviews whether the assets ar

    A specialist reviews whether the assets are candidates and what valuation support is needed.

  3. 3

    Step 3

    You apply through the secure application c

    You apply through the secure application channel.

  4. 4

    Step 4

    A human reviewer confirms title, liens, co

    A human reviewer confirms title, liens, condition, and value.

  5. 5

    Step 5

    On approval, the asset is purchased and le

    On approval, the asset is purchased and leased back to you under documented terms.

Documentation typically requested

  • Original invoices or proof of purchase
  • Titles or ownership documentation and lien status
  • Photos, serials or VINs, and current hours or mileage
  • Basic business information; financials may be requested

Sensitive items such as Social Security numbers, dates of birth, and bank details are collected only in the official secure application — never in chat, email, or a web form comment field.

Things to weigh

Accounting treatment

Sale-leaseback treatment under current accounting standards can be nuanced. Involve your CPA early.

Valuation drives proceeds

Proceeds are tied to supportable value, not to what you originally paid.

Age limits

Very old assets often do not qualify because remaining useful life cannot support a term.

Illustrative example — not a rate or approval
A printer paid cash for a $220K press two years ago and now wants to redeploy that capital into a new facility build-out. A reviewer confirms clear title and current value before structuring the leaseback.

This scenario is a hypothetical illustration to explain how the process typically runs. It is not an approval, a quote, or a guarantee of any outcome.

Related questions

Related industries

  • Printing & PackagingPresses, finishing, converting, and labeling systems.

Check your scenario

Share non-sensitive details and a specialist will outline structure options and the documentation your file needs.

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Editorial provenance

Human reviewer
Reviewed by: AILCO Credit & Compliance (placeholder reviewer)
Last reviewed
2026-07-28

Citations & sources

  • IRS Publication 946 — How to Depreciate PropertyGeneral reference for equipment depreciation concepts. Confirm with your CPA.
  • U.S. Small Business Administration — Financing basicsGeneral small-business financing education.

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