Sale Leaseback

Sale Leaseback, Sunset Financial Group

Sale-Leaseback Agreements
Sale-leaseback agreements allow businesses to raise capital while retaining the use of all their assets. This is done by selling an owned company asset (usually a piece of equipment) to Sunset Financial Group, LLC and then leasing it back. At the conclusion of the contract, all rights are transferred back to the Lessee. A sale-leaseback can present a business with a considerable source of working capital that can be used for a variety of different purposes.

Benefits

Many companies can benefit from sale-leaseback agreements. If your business does not qualify for traditional bank financing or you want to protect your company’s existing credit line, sale-leasebacks can be utilized for investment, to restructure troubled financials.

Sale-leaseback agreements also offer Lessees the chance to reap the various tax benefits associated with leasing equipment. For one, a sale-leaseback allows Lessees to structure a transaction as a taxable sale – an opportunity that can help offset net operating losses that, unless used, would otherwise expire. Since lease payments are not considered preference items, companies that operate under the Alternative Minimum Tax bracket may also benefit from engaging in a sale-leaseback.

If you have been in business for at least six months and own your equipment outright, you may be a viable candidate for a sale-leaseback agreement through Sunset Financial Group, LLC. Clients with no credit or less-than-perfect credit can potentially qualify for sale-leaseback financing, including those which possess open tax liens and previous bankruptcies.

(Note: While there are obvious potential tax benefits related to sale-leaseback agreements, it is always important to consult a licensed professional regarding all accounting and tax related questions and claims. Sunset Financial Group, LLC is an equipment leasing and financing company that does not provide accounting or tax consultation.)

Application Process

Sunset Financial Group’s process for qualifying for this type of financing is refreshingly straightforward and easy to complete. Simply complete our one-page application and a facilities list outlining all of your equipment involved in the agreement along with your company’s last three (3) months bank statements.

Sunset Financial Group requires hard collateral assets such as yellow iron, construction equipment, heavy machinery, tractors, farming equipment, trucks, trailers etc. that have auction values of at least $10,000 per unit. Sunset Financial Group will not consider soft collateral for this program. Examples of soft collateral include (but are not limited to): gaming equipment, beauty salon equipment, IT equipment, computers, servers, network switches, telephone systems, copiers, faxes, dry cleaning equipment etc.