Purchase/Leaseback
A Purchase/Leaseback transaction provides lease financing for equipment that the customer has already taken title to. The lessor purchases the equipment from the customer for a specified price, generally the current fair market value of the equipment, and leases it back to the customer at a mutually agreeable rate and lease term.
Benefits of a Purchase/Leaseback Transaction
TIP Capital can structure a lease to fit virtually any customer requirement. We provide a wide range of payment options, including step payments, seasonal payments and usage or consumption-based payments. We also provide progress or bridge funding on longer-term projects, and offer several technology upgrade options.
TIP Capital’s “customer first” approach ensures that we remain
vendor-neutral, allowing us to propose creative leasing solutions regardless of manufacturer.
A Purchase/Leaseback transaction can be designed to provide you with the following benefits:
- Frees up cash to be used in other areas of the business
- Transfers the risk of technological obsolescence to the lessor
- Can provide more favorable accounting and tax treatment
- Minimizes impact on the customer’s bank lines of credit