Equipment Lease Buybacks

What is an Equipment Lease Buyback?

An equipment lease buyback, also known as a leaseback, is a financial transaction in which one party sells business equipment or other tangible assets and leases it back.

The mechanics behind equipment lease buyback transactions are fairly simple: a company or individual purchases equipment or some other asset. He or she then sells the equipment to a third party, typically for a prolonged length of time, at which point the equipment is leased back to the original owner.

Equipment Lease Buybacks are Ideal For:


  • Companies that Own Equipment
  • Reducing Tax Liabilities
  • Working Capital Preservation
  • Saving on Down Payments
  • Avoiding a New Line of Credit

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Equipment Lease Buybacks

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(Minimum: US $500,000 - No MAX)
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Frequently Asked Questions About Equipment Lease Buyback


Who Uses Equipment Lease Buybacks?
Equipment lease buybacks can be used by any company or organization that owns tangible assets. This type of financial transaction is common in the general aviation industry, for instance, as flight training schools will often sell their airplanes and other high-dollar equipment to a holding company while still being able to use them through lease buybacks.

Manufacturing and industrial companies also use lease buybacks on their high-dollar equipment. A new forklift, for instance, can easily cost more than $25,000. Footing the bill for several dozen forklifts can quickly place a financial burden on an industrial company. By using an equipment lease buyback, however, the company can continue using the forklifts after selling them to a holding company.

The Bottom Line
Equipment lease buybacks are a great way for companies and organizations to generate revenue on their tangible assets. The business equipment is sold to a third party who then leases it back to the original owner. The original owner may continue using the equipment, assuming the lease is paid on time and according to the terms set forth in the transaction.

How to Apply for Equipment Lease Buyback Funding?
For more information on Equipment Lease Buybacks, private capital, or any questions regarding our business funding process, please Contact Us. To begin a funding application, simply follow the "Apply Now" link to get started. Let Intrepid Private Capital Group help connect you with the private capital that you need for your business or project.

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Benefits of an Equipment Lease Buyback
While the benefits of lease buyback transactions vary depending on the scenario, some of the most common benefits associated with this unique financial transaction include the following:

  • Acquire capital with little to no credit.
  • Reduces the seller's tax liability.
  • Capital generated through lease buybacks can be used to pay off or pay down outstanding debt; thus, reducing interest costs on traditional loans.
  • When used in real estate, lease buybacks can limit risks (e.g. cyclical market variations).
  • Transfers ownership of equipment to a holding company while still maintaining proper records of the equipment's value and/or profitability.

From the investor's standpoint, some of the benefits of leasing equipment or assets back to the original owner include a positive return on investment, usually in the form of rent/lease, along with a guaranteed stream of income.

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