Sale Leaseback Financing
Upward Capital Funding recognizes that the need for short-term financing is not always solved by loans. If your business needs fast capital to act on a time-sensitive transaction, or if you need extra funding to meet unexpected financial obligations, our sale leaseback financing program can help.
How Sale Leaseback Financing Works
With sale leaseback financing, assets owned by the business are sold for working capital, and then are immediately leased back. This provides businesses with a source of short-term working capital, while retaining usage of the sold assets. Since this form of financing is considered a sale, there is no debt placed on the balance sheets. Typically, the items used in sale leaseback financing are equipment and machinery. The amount of financing available is based on:
- How new the equipment is
- The condition of the equipment
- How specialized the equipment is
- The market demand for the assets being sold
Currently, the IRS tax guidelines state that payments made on leased assets are tax deductible. For business owners, this means that payments made through sale leaseback financing can be recouped up to $500,000 when filing taxes.
Upward Capital Funding provides a wide range of debt-free working capital solutions for businesses across all industries. If you need short-term financing, but want to avoid debt, contact our offices today.