Hidden Source of Capital with Sale-Lease-Back Solutions from Liberty Capital
In today’s rapidly changing business landscape, maintaining a steady cash flow can be challenging, especially for businesses experiencing declining revenues. When traditional lending avenues turn away from your application due to negative financial trends, Liberty Capital steps in with innovative solutions like the sale-lease-back option.
What is a Sale-Lease-Back?
A sale-lease-back is a financial arrangement that allows businesses to unlock the value of their assets without losing operational control. In simple terms, it involves selling your assets, such as trucks, trailers, or equipment, to a financial institution like Liberty Capital and then leasing them back over an agreed period. This approach provides immediate working capital while allowing you to continue using the assets critical to your operations.
Why Consider a Sale-Lease-Back?
For businesses facing a decline in revenue, a sale-lease-back offers a strategic lifeline:
- Immediate Access to Capital: Free up cash tied in assets to reinvest in your business.
- Continued Use of Assets: Maintain operational continuity by leasing back essential equipment.
- Flexible Terms: Tailor the lease-back terms to fit your business needs and cash flow.
- Improved Financial Position: Strengthen your balance sheet by converting fixed assets into liquid assets.
- Accessible to All Credit Types: Whether you have good credit or bad credit, our solutions are designed to accommodate a variety of financial situations.
- Ideal for Asset-Rich, Cash-Poor Businesses: Perfect for those who have significant assets but lack immediate cash flow.
When to Apply for a Sale-Lease-Back
One key lesson for business owners is to apply for financial solutions before they become a necessity. This proactive approach ensures access to favorable terms and conditions, providing a financial cushion when you need it most.
A Cautionary Tale: Apply Before You Need It
Consider this scenario: A client with a successful business experienced a sudden decline in revenue, eventually reaching negative cash flow. Traditional lenders turned away their application due to declining sales, leaving them without options when they needed capital the most.
Moral of the Story: Apply for financial solutions like sale-lease-back before reaching a critical point. When you’re in a stronger financial position, lenders view your application more favorably, allowing you to secure the best possible terms.
How Liberty Capital Can Help
At Liberty Capital, we understand that businesses can face challenging times. That’s why we offer sale-lease-back solutions tailored to help you access the capital you need, even if your revenue is declining. Here’s how we can help:
- Evaluate Your Assets: We assess the value of your free and clear assets, such as trucks, trailers, or heavy equipment, to determine how much capital we can unlock. This is especially beneficial for those who have used cash in the past to purchase equipment.
- Asset Appraisal Based on Auction Value: We fund based on the auction value of your assets rather than retail value, ensuring a realistic and achievable financial solution for you.
- Tailored Financial Solutions: Our team works closely with you to create a sale-lease-back agreement that aligns with your business goals and financial needs.
- Fast and Simple Process: Our streamlined application process ensures you receive the funds quickly, minimizing disruption to your operations.
- Expert Guidance: With over 20 years of experience, our experts provide personalized advice to help you make the most of your sale-lease-back arrangement.
Real-Life Scenario: Turning Assets into Opportunity
Here’s a situation we encountered:
Client: A transportation company with several trucks and trailers experiencing declining sales.
Challenge: Traditional lenders were unwilling to offer financial support due to negative revenue trends.
Solution: Liberty Capital evaluated the client’s assets and structured a sale-lease-back agreement. The client received immediate working capital based on the auction value of their assets, enabling them to invest in marketing and operational improvements to turn their business around meanwhile making low monthly payment removing the daily payment strain that was causing their cashflow to deteriorate while sales are recovering.
Why Choose Liberty Capital?
- Proven Expertise: Our seasoned professionals have a track record of helping businesses in challenging financial situations.
- Tailored Solutions: We understand that every business is unique, so we customize our financial solutions to meet your needs.
- Transparent Process: Our commitment to transparency ensures you understand every step of the process and receive clear communication.
- Customer-Centric Approach: We prioritize building long-term relationships with our clients, focusing on your success.
- Support for All Credit Types: Our solutions are available for clients with both good and bad credit, making it easier for everyone to access the financial support they need.
Assets that can be used medical equipment, printing equipment, manufacturing equipment, transportation and heavy construction equipment.
Take Action Today
Don’t wait until it’s too late. If your business is experiencing declining revenues, now is the time to explore sale-lease-back solutions with Liberty Capital. Unlock the hidden value in your assets and secure the working capital you need to keep your business thriving.
Apply now to get your business capital to grow
Inside Info Most Business Owners Don't Know
Most small business owners haven’t even heard of sale lease back little alone know how it works.
But, this type of source of capital for those who have free and clear and unencumbered assets can leverage as long as there’s resell or auction value to determine the current price to be able to determine what’s the ratio a lender would use to the amount of collateral to funding. IF the loan is $100k, most lenders will require the collateral to be worth at least $300k in the 3/1 ratio. Every dollar lent require $3 of asset collateral, for this example equipment. Some lender will use 2/1 lent to collateral for working capital loans. Basically, giving the client access to working capital.
The other aspect of sale lease back is when you as a business owner purchases an equipment within 30-60 days and would like to be reimbursed. We will purchase the equipment back from you and lease it back to you for a monthly payment + interest for a set period of time with the lease to own or other leasing options. This sale lease back doesn’t need collateral lent ratio like the former type of sale lease back.
Sale Lease Back vs. Business Term Loans
Short-Term Business Loans:
- Amount: $2,500 to $250,000
- Term: Typically, up to 18 months
- Interest Rate: Starts at around 10%
- Features: Quick funding (as little as 24 hours), flexible repayment options (daily, weekly, or monthly), and minimal paperwork.
Long-Term Business Loans:
- Amount: Up to $5,000,000 per location based on the need
- Term: 2 to 15 years
- Interest Rate: Lower rates due to longer repayment periods and often requiring collateral and typically for well bankable clients.
- Features: Lower monthly payments, potential for large funding amounts, and use for major expenses like expansions, equipment purchases, or large inventory.
Unsecured Business Loans:
- Amount: Up to $5,000,000
- Term: Varies from 3 to 36 months
- Interest Rate: Generally higher than secured loans due to the lack of collateral.
- Features: No need for collateral, faster approval process, and funding can be used for a variety of business needs.
- Amount: Varies based on collateral value and LTV
- Term: Varies up to 20 years
- Interest Rate: Lower due to collateral security
- Features: Requires collateral such as property or business assets, lower interest rates, and larger loan amounts available.
- Commercial building, apartments, condos and other commercial properties falls into this. We have SBA 504, Investors, and private banks and lenders who will fund your commercial loan and bridge loans.
Equipment Financing and Leasing:
- Amount: Based on equipment value
- Term: Matches the useful life of the equipment
- Interest Rate: Competitive rates
- Features: Specifically, for purchasing or leasing business equipment, preserving cash flow, and potential tax benefits.
What are the Requirements for Sale Lease-Back?
- Approved Industry and equipment
- Revenue: Demonstrated gross monthly revenue if not pre-revenue startup.
- Time in Business: Typically, at least 2+ years, but varies by loan type, industry.
- Credit Score: Personal credit score is considered, though high scores are not always required.
- Documentation: Financial statements, tax returns, bank statements, and a personal financial statement may be require for bigger ticket items or for SBA Express loan or bank loans.
Funding Rates and Features
- Fast Funding: Many loans can be funded within 2-4 weeks.
- Flexible Terms: Payment plans are tailored to the business’s cash flow needs, assets and coverage ratio.
- No Pearly Payoff Penalties: Many loan options allow for early repayment without additional fees.
- Customizable Loan Products: Loans can be structured to fit specific business needs, whether for working capital, expansion, or equipment purchases.
- Early Payoff Discount: Depending on the term loans, you might be able to pay off the principle early without paying for the remaining unaccrued interest.
Liberty Capital Group aims to simplify the loan application process with online pre-qualification, minimal paperwork, and a wide range of loan products to suit various business needs under one roof.
What do we need?
To get a free quick no obligation loan offer analysis, we would need the following: but subject to additional info depending on the loan type, amount and your credit profile.
- ONLINE APPLICATION
- Last Years Tax returns
- Current financial statements
- Recent bank statements
- List of your Assets
- Debt Schedule
We look forward to speaking with you.
Best of luck!
How To Apply!
Liberty Capital is committed to helping small business owners acquire the heavy equipment they need to thrive. So, we make it simple for you to apply using our Simple Application
Join the thousands of businesses that have trusted Liberty Capital Group with their financing needs. Let us help you achieve your business goals and take your business to new heights.
