Equipment Leasebacks with Loeb Are Fast and Easy
Equipment leasebacks are a great way to maintain positive cash flow, which can be critical to your ongoing success in the commercial marketplace. Loeb offers asset management solutions that include equipment leasing, equipment term loans and other financial services that can make it much easier for you to maintain working capital for your operations. Equipment and machinery leasebacks offer real advantages for your business or manufacturing operations.
What Are Equipment Leasebacks?
A leaseback is a financial arrangement in which you can sell an asset to a finance company and then lease that same asset from the company for a specific term. Equipment leasebacks can allow your company to maintain its pool of working capital while continuing to use the equipment needed for your business. Some of the main elements of an equipment leaseback are below:
- Loeb can perform in-house appraisal services to determine the real value of your equipment. We can then purchase your equipment and lease it directly back to you on terms that work for your company and for Loeb’s financing model.
- Your machinery leaseback arrangement can allow you to keep your equipment off your books and ensure certain tax benefits and to manage other financial matters more successfully.
- Equipment sale leaseback lenders look at the value of your collateral and not your overall credit score. This can make it much easier to obtain these arrangements in the financial marketplace.
- As the economy continues to grow, many industry experts predict growth of 10 percent or more in the equipment acquisition and leasing field. Leasing offers advantages for companies that can help them gain a significant edge in the competitive marketplace.
- Machinery leasebacks from Loeb can range between $500,000 and $2 million for our clients.
Creating your own equipment sale leaseback strategy can provide you with added flexibility in managing your company’s finances. Loeb can help with practical solutions that work for your budget and your financial situation.
Who Uses Equipment Leasebacks?
Equipment and machinery leaseback arrangements are typically sought by bankers, brokers, financial advisors, chief financial officers, factoring companies and small-to-medium business owners and operators. These individuals are looking for options that best suit their financial needs from a trusted and reliable company. Loeb has been serving clients for more than a century and can provide machinery leaseback arrangements across the United States and Canada. We have a license to provide equipment term loans, leasing arrangements and leaseback programs in the state of California, a license granted to only a few equipment sale leaseback lenders. If you are interested in restructuring your company’s finances or have had credit challenges in the past or present, Loeb can provide innovative and practical solutions for you.
Why Should You Choose an Equipment Leaseback?
Choosing to lease machinery from Loeb can help you to manage all the different types of cash flows of your business. These include revenues derived from operating activities, investing activities and financing activities. Equipment financing loans and leasebacks fall under the cash flow category of financing activities. Opting for equipment leaseback arrangements offer some real benefits for your business, including the following:
- Because the qualification criteria for machinery leasebacks is different from traditional loans, you can qualify more easily for machinery leaseback options than for more traditional forms of equipment loans.
- By choosing to sell and then lease machinery from Loeb, you can free up cash that can be used for your core business operations.
- Your leaseback program can be customized to suit your needs and your financial situation.
- Machinery leasebacks are available to clients with subprime credit. Loeb will work with you to determine the right approach for your company and to provide financing even when other lenders may not be willing or able to help.
What Are the Main Industries for Which Loeb Provides Equipment Leasebacks?
Loeb can provide equipment leaseback solutions for companies in a wide range of industries, including the following:
- Metalworking industry
- Transportation industry
- Plastics industry
- Food processing industry
- Beverage and brewery industries
- Cosmetics industry
The Loeb team has also arranged for heavy equipment leaseback and meat equipment leaseback arrangements in certain cases.
What Types of Equipment Leasebacks Are Excluded?
Loeb cannot provide equipment or machinery leasebacks for agricultural equipment, mining equipment or restaurant equipment.
How Are Used Equipment Leasebacks Done?
In general, machinery leasebacks are used to avoid the process of bank financing. Some of the most common configurations for equipment leaseback arrangements include management buyouts, debtor-in-possession arrangements and situations in which out-of-court debt restructuring is implemented to prevent insolvency, foreclosure or bankruptcy. A machinery leaseback can provide a valuable infusion of cash into the business while allowing it to continue operating with the same equipment it owned before the arrangement was put in place.
In What Areas Does Loeb Provide Equipment Leasebacks?
Loeb offers equipment purchase leaseback arrangements to companies throughout North America and Canada.
How Long Do Equipment Leaseback Arrangements Last?
The average sale lease back contract spans anywhere from 12 months to ten years. The exact duration will be specified in your contract along with any special terms you work out with Loeb. In most cases, longer sale lease back arrangements result in lower costs per month for your company. Loeb will work with you to determine the best approach to your equipment purchase leaseback arrangement. At the end of your leaseback program, you can make a balloon payment to reacquire your machinery or allow Loeb to pick up your equipment. We can customize your machinery leasebacks to suit your current and future needs.
How Can I Apply for an Equipment Leaseback?
The process of applying for a machinery leaseback is similar to that used for commercial equipment loans. Some of the steps necessary to lease machinery using this method will typically include the following:
- Completing a credit application and offering personal guarantees
- Scheduling annual inspections of the equipment with Loeb
- A comprehensive equipment appraisal that includes an application
- Execution of the agreement to lease machinery
- Delivery of lease payments as outlined in the contract
- A possible balloon payment at the end of the machinery leaseback or the relinquishing of the equipment to Loeb
Loeb works with you to make the entire process as simple and as fast as possible to help you manage your financial arrangements in the most practical and efficient way possible.
Who Can Qualify for Leaseback Arrangements?
If you own your own equipment, you can usually qualify for machinery leasebacks. Loeb will perform an appraisal on the equipment to determine its value and the terms of your leaseback contract. You will then have an operating lease on the equipment that will allow you to continue to use your equipment while paying a modest monthly fee. This can free up some cash that would otherwise be tied up in these corporate assets and can allow you to manage expenses and acquisitions more effectively. If you have equipment you can leverage, you can probably qualify for a machinery leaseback arrangement from Loeb.
How Do Leasebacks Compare with Bank or Term Loans?
Equipment leasebacks offer some significant advantages over traditional bank loans:
- Leasebacks can be configured as off-balance-sheet financing, which can help you improve your company’s financial ratios.
- Machinery leasebacks take much less time than comparable loans from banks and other traditional lenders.
- Your leaseback can be structured for longer periods to provide added tax advantages.
- Because equipment leasebacks are fully collateralized, they can feature lower rates than competing products.
- Loeb holds the note for these types of arrangements, which can create added flexibility for attracting financial partners and acquiring other forms of financing.
- Machinery leaseback arrangements are ideally suited for companies in turnaround, in a Chapter 11 workout plan or with a need to restructure debt and to strengthen their financial positions in the competitive marketplace.
- Loeb’s contracts do not include restrictive financial covenants that could undermine your competitive edge.
Why Choose Loeb for Your Equipment Sale Leaseback?
Loeb has been offering equipment and machinery leasebacks for more than 25 years. With 100 years of experience in the industry, we can provide practical solutions with lower rates and greater flexibility than our direct competitors in this financial marketplace. This can add up to improved financial stability for your company and an increased ability to respond to changes in the commercial and industrial fields.
What Are the Drawbacks of Equipment Leasebacks?
Understanding the pros and cons of equipment sale leaseback is critical to achieving the best results for your business. One negative of these machinery leaseback arrangements is that you cannot claim the depreciation. Additionally, at the end of your equipment sale leaseback term, you will be expected to return the equipment to Loeb.
How Quickly Can My Leaseback Arrangement Be Completed?
If no other liens are present, your machinery leaseback can often be completed in as little as three weeks. More complicated financial situations will usually take more time.
Other Services Offered by Loeb
Loeb offers an array of services designed to help you manage your equipment requirements and your financial arrangements more effectively. Some of our most popular services include the following:
- Loeb can offer debtor-in-possession financing during bankruptcy
- Loeb auction services are designed to bring buyers and sellers together in a reliable venue.
- Loeb also offers liquidation services for companies that are going out of business or divesting themselves of large quantities of equipment or inventory.
- Our equipment term loans are ideally suited to provide real help in managing the expense of acquiring new and used machinery in the commercial marketplace.
- Loeb can provide equipment rentals that offer the greatest possible flexibility for managing short-term needs. You can save time and effort by renting machinery you only need occasionally from the experts at Loeb.
- Our team also offers equipment leasing and machinery leaseback arrangements that are structured to suit your needs and your budget.
- At Loeb, we can buy your surplus equipment at fair prices to help you manage your inventory in a practical and profitable way.
Why Choosing Loeb Makes Sense
At Loeb, we work with you to determine the best solutions for your needs. From expert auction services to equipment sale leaseback services, Loeb is committed to the highest standards of customer service and innovation in the industrial equipment and financial marketplace. To learn more about our equipment purchase leaseback options and how they can help you manage cash flows more efficiently, call us at 1-800-560-LOEB. We look forward to the opportunity to work with you.