Release cash from gear you already own
Release the cash sitting in equipment you already own.
Sell owned plant to a financier, keep using it, and free up capital for the next contract. Your broker explains valuation, tax consequences and total cost first.
What is a sale and leaseback?
Sale and leaseback is an arrangement where you sell equipment your business already owns to a financier for its market value and immediately lease or finance it back, releasing cash while keeping the asset in daily use. It converts equity locked in plant into working capital.
Plenty of businesses are asset-rich and cash-poor: two paid-off excavators in the yard and a payroll problem in the office. Sale and leaseback releases that equity without selling the gear that earns the revenue. The financier pays you an agreed value for the asset, registers its interest, and you continue operating it under a lease or chattel mortgage with regular repayments.
Financiers typically advance 60–80% of assessed market value, not the price you paid, and they want assets that are clearly identifiable, in good condition and free of existing encumbrances — a PPSR search will confirm that quickly. Most lenders limit leasebacks to equipment purchased within the last few years, and some restrict it to assets bought outright for cash rather than refinanced from another financier.
Two consequences deserve attention. The sale itself can trigger a balancing adjustment for tax if the sale price differs from the written-down value, so speak to your accountant before committing. And an asset that was previously cost-free now carries a monthly repayment — the capital is only worth releasing if it will earn more than the finance costs.
Sale and leaseback at a glance
| Amount | $20,000 – $2,000,000 |
|---|---|
| Term | 12–60 months |
| Rate type | Fixed |
| Indicative rates (Q3 2026) | 8.5% – 18% p.a. · see rate history |
| Security | Secured by the asset |
| Repayments | Monthly |
| Typical speed | 3–10 business days including valuation |
| Best for | Asset-rich businesses needing working capital for growth, a contract or a tax liability |
| Consider something else if | Older, low-value or specialised equipment with a thin resale market |
| Tax | A sale may trigger a balancing adjustment against the asset’s written-down value. Get accounting advice before proceeding. |
Advantages
- Releases capital without losing the use of the asset
- Priced as secured finance, not unsecured lending
- No property security required
Trade-offs
- Advance is based on market value, often well below cost
- A previously cost-free asset now carries repayments
- Potential tax balancing adjustment on the sale
How to apply for a sale and leaseback
- 01
List the assets
Make, model, year, hours or kilometres, condition and proof that each is owned outright.
- 02
Valuation and offer
The financier assesses market value and runs a PPSR search, then confirms the amount it will advance.
- 03
Settle and continue trading
Funds are paid to your business, the security interest is registered, and the equipment keeps working.
Documents lenders commonly ask for
- Original purchase invoices proving ownership
- Asset schedule with serial numbers, hours and condition
- Bank statements and financials
What people finance with a sale and leaseback
Lenders we compare for this
Metro Finance, Angle Finance, Flexicommercial, TruCap, Pepper Money and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $19,802
- Total repaid (est.)
- $94,802
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is sale and leaseback?
Sale and leaseback is a transaction where a business sells an asset it owns to a financier and simultaneously leases or finances it back, retaining full use of the asset while converting its value into cash.
How much can you raise through equipment leaseback?
Financiers generally advance 60–80% of an asset’s assessed market value, based on age, condition, hours and resale demand rather than the original purchase price. A valuation or inspection is usually required.
What is a PPSR search?
A PPSR search checks the Personal Property Securities Register for existing security interests over an asset. Financiers run one before a leaseback to confirm the equipment is genuinely unencumbered and can be sold.
Sale and leaseback FAQs
Can I finance equipment I already own to release cash?
Yes, that is a sale and leaseback. You sell an unencumbered asset to a financier and lease or finance it back, receiving the sale proceeds as working capital while keeping the asset in use. Lenders will want proof you own it outright, a valuation, and evidence the funds are for a legitimate business purpose. It is a useful option when capital is tied up in plant, but it converts an owned asset into a monthly commitment, so the cash flow effect needs checking first.