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Sale-Leaseback

Sale-Leaseback Arrangements

An arrangement whereby equipment is purchased by a lessor from the company owning and using it. The lessor then becomes the owner and leases it back to the original owner, who continues to use the equipment.

Additional Requirements

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Equipment must be lien free

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Equipment must be independently appraised

Advantages

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Easy way to increase working capital

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No collateral other than the equipment

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Monthly payments can be tax deductible

 

 

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