Food for Thought

4 Ways to Use a Lease at the End of the Year

4 Ways to Use a Lease at the End of the Year


Evaluating a company’s financial health at the end of every fiscal quarter, and especially at the end of the fiscal year, is no small project for any industry. In food and beverage, leasing can be a strategic solution for many companies hoping to get cash on the books or just set themselves up for successful growth and change in the coming year.
Here are the most popular ways leasing could be used to consider at your year-end:

1. Sale and Leaseback

  • Cash reimbursement replenishes businesses with cash previously tied up in purchases made over the last 6-12 months. Use this newly available liquidity to reinvest in ongoing projects, or allocate to large initiatives next year.

 2. Lock in Rates

  • Secure the current low cost of funds rate and ensure that your business will be able to tackle any project – big or small – in the upcoming months. Unlike a bank, leasing is not subject to under or non-utilization fees.

​3. Deferred Payments

  • If you have less than 90 days until fiscal year-end, take advantage of deferred payments to prevent negative debt ratings and violating bank covenants.

​4. Establish a Lease Line

  • The most versatile way to use a lease is through a lease line of credit. One simple lease can be used to fund a variety of projects, including production, expansions and even SAP/ERP and IT.

First American Food and Beverage division is the leading industry expert in these forms of custom and creative leasing products.

Visit to learn more.

Follow Us

First American Commercial Bancorp, Inc. is a wholly-owned subsidiary of City National Bank. Deposit products and services are offered by City National Bank Member FDIC. City National Bank is a subsidiary of Royal Bank of Canada. For California clients: Loans made or arranged pursuant to a California Finance Lenders Law license. All trademarks are the property of their respective owners. Additional terms apply and can be found by visiting

© 2021 First American Equipment Finance. All rights reserved.