Sale & Leaseback

Sale and leaseback finance allows your business to sell eligible vehicles, machinery or equipment to a finance provider and continue using those assets under a lease or finance arrangement. It can unlock capital tied up in assets you already own without requiring you to stop using them in your business.

Your eligible asset is valued and sold to the finance provider. The provider then leases or finances the asset back to your business under an agreed arrangement. Your business receives the agreed funds upfront and continues using the asset while making regular repayments.

Eligible assets can include trucks, trailers, vehicles, construction equipment, earthmoving machinery, agricultural machinery, manufacturing equipment and other business assets. Eligibility depends on factors such as the asset type, age, condition, value and ownership.

Sale and leaseback can help release cash tied up in business assets. The funds can potentially be used for working capital, expansion, stock, wages, tax obligations, debt consolidation, new equipment or other legitimate business purposes.

The amount available generally depends on the value of the eligible assets, their age and condition, your business financial position and the lender's criteria. The amount advanced may be less than the asset's market value depending on the transaction and finance structure.

Generally, you need to have sufficient ownership or equity in the asset for a sale and leaseback transaction. If finance is still owing, it may be possible to refinance or restructure the existing debt as part of the transaction, subject to eligibility.

Potentially. If there is sufficient equity in the asset, the existing finance may be able to be paid out and replaced with a new facility. We assess the current payout amount, asset value and your funding requirements to determine the available options.

Timing depends on the assets, valuations, ownership verification and finance structure. Straightforward transactions can often be assessed quickly once the required information is available, while larger or more complex transactions may take longer.

Rates vary depending on the asset, amount financed, term, business profile, credit history and overall transaction. We compare suitable options across our panel of 80+ banks and non-bank lenders to help find a competitive rate and structure for your business.

Not necessarily. The transaction is generally structured around the eligible business assets rather than requiring residential or commercial property as security. Additional security or guarantees may still be required depending on the lender and application.

Potentially. Low-doc or streamlined options may be available for eligible businesses, depending on the asset, amount and lender. You may instead be assessed using information such as business bank statements, turnover, ABN and GST history, asset details and your credit profile.

Potentially. Previous credit issues don't automatically rule out sale and leaseback finance. The value and quality of the assets, current business performance, cash flow and nature of any credit issues can all influence the options available.

Potentially. Eligible Australian businesses, including sole traders, partnerships, companies and trusts, may be able to use sale and leaseback finance, subject to ownership of suitable assets and lender criteria.

Yes, subject to eligibility. Trucks and other commercial vehicles can potentially be used in a sale and leaseback transaction, allowing your business to release capital while continuing to operate the vehicle.

Yes. Eligible construction, earthmoving, agricultural, manufacturing and other business machinery may be suitable for sale and leaseback finance.

Potentially. A sale and leaseback transaction can involve one asset or a portfolio of eligible assets. Using multiple assets may allow a business to unlock a larger amount of capital, depending on their combined value and lender criteria.

Yes. That's one of the main purposes of sale and leaseback finance. Although ownership of the asset changes as part of the transaction, your business continues using it under the agreed finance or lease arrangement.

Funds released can generally be used for legitimate business purposes such as working capital, wages, suppliers, stock, expansion, tax debt, purchasing additional equipment, refinancing existing business debt or taking advantage of new opportunities.

It can. Instead of leaving capital tied up in assets, sale and leaseback can convert some of that asset value into available cash while allowing your business to continue using the equipment it needs to operate.

Yes. Businesses may use capital released from existing assets to purchase stock, hire employees, take on larger contracts, open new locations, purchase additional equipment or fund other expansion plans.

Potentially. Funds released through an eligible sale and leaseback transaction may be used for business tax obligations, subject to the finance agreement and lender criteria.

Potentially. Capital released from eligible assets may be used to refinance or consolidate existing business debts. Whether this improves your position depends on the rates, fees, repayments and overall cost of the new facility.

Refinancing generally replaces an existing finance facility with another loan or facility. Sale and leaseback involves selling an asset and then continuing to use it under a new lease or finance arrangement. Both can potentially release capital, but the ownership and finance structures are different.

An unsecured business loan provides funding based primarily on the strength of your business and ability to repay without requiring property security. Sale and leaseback uses value already held in eligible business assets to generate funding and involves transferring ownership of those assets.

Sale and leaseback is a type of asset-based finance, but it differs from financing a new purchase. Traditional asset finance helps you acquire an asset, while sale and leaseback releases capital from an asset your business already owns.

Repayments depend on factors such as the amount financed, term, rate, fees and structure of the agreement. We compare the repayment as well as the total cost to help ensure the facility is appropriate for your business cash flow.

Terms vary depending on the type and age of the asset, amount financed and lender criteria. The remaining useful life of the asset can also influence the maximum finance term available.

This depends on how the transaction is structured. There may be options or obligations relating to ownership, purchase, refinancing or return of the asset at the end of the term. These should be clearly understood before entering into the agreement.

There can be. Selling an asset and entering into a new finance arrangement can have GST, income tax, depreciation and other accounting consequences. The treatment depends on your business and transaction structure, so independent accounting or tax advice should be obtained before proceeding.

Requirements vary, but you may need identification, ABN or company details, evidence of asset ownership, asset descriptions and serial numbers, existing finance payout details, valuations or purchase documentation, business bank statements and financial information.

Often. The lender needs to establish an acceptable value for the assets before determining how much finance may be available. The valuation process depends on the asset type, age, condition and transaction size.

Getting an initial quote with Overdrive does not require an upfront credit check. We can assess your assets and requirements and compare suitable options before progressing to a formal application. If you decide to proceed, the selected lender may conduct a credit enquiry as part of its assessment.

Sale and leaseback can be worth considering if your business owns valuable vehicles, machinery or equipment but needs additional working capital. It allows you to unlock capital without selling assets you still need to operate, although the costs, repayments, ownership implications and tax treatment should all be considered.