Convert Existing Equipment into Cash with a Sale-Leaseback from IFC

 

For Middle Market Sale-Leaseback Information:

Brian Cascarano
Vice President of Marketing
(847) 663-6700

bcascarano@
ifccredit.com
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For Small Business Sale-Leaseback Information:

Call: 800-554-4432
Or, visit our website at:
www.firstcorp.com

If your business has capital trapped in underperforming machinery or equipment assets, consider converting these assets back into cash to be used in more profit generating activities.  Using a sale-leaseback transaction, IFC can purchase equipment from you (transferring title through a Bill of Sale), and then leases it back to you under favorable terms. 
With a sale-leaseback transaction, equipment acquired within 90 days may be grandfathered as new equipment, while older equipment may only need a brief appraisal. This type of transaction frees up cash from fixed assets that may be used for operating purposes, while preserving existing bank revolving credit lines for other uses.
A quick example: A business has an opportunity to generate $1 million in additional revenue through a new contract to produce machined parts, but it needs $125,000 in raw materials to create the finished product.  Because they own the machinery in its plant outright and wish to preserve existing bank lines, they conclude that it is more cost effective to access funds through the sale-lease back of an existing machine.
Using a sale-leaseback transaction, they keep these items exactly where they are and use them like they have been. But they transfer the title ownership to IFC.  IFC leases the assets back to the company under favorable terms, and can also provide a flexible payment schedule such as a payment delay for the first ninety days, graduating payments during the first year, or many other options.
The biggest benefit of a sale-leaseback transaction is the ability to increase a company's financial flexibility by divesting assets at more attractive financing terms, while maintaining the availability of traditional bank financing for the future.
Do you have existing equipment that you would like to convert to cash?  If so, call IFC to learn how this type of transaction can benefit your business.