Sale and Leaseback

Put Cash Back on Your Books

As you approach your fiscal year end, it is an excellent opportunity to analyze your financial position. And during an uncertain economic environment, your cash position is a critical financial consideration. By taking advantage of a cash reimbursement transaction, also known as a sale and leaseback, you can improve your cash position and take advantage of benefits such as:

Put cash back on your books
Maintain debt ratings
Avoid bank covenant violations
Improve liquidity ratios
Consolidate multiple capital acquisitions onto one lease
Spread the cost of equipment over the life of the asset

What is a Sale and Leaseback Transaction?

In a cash reimbursement, also known as an equipment sale and leaseback transaction, you sell your equipment to a lessor, and the lessor reimburses your company 100% of the original purchase price of your equipment. You continue the use of your equipment and use the cash reimbursement for:

Growth initiatives
Strategic projects
Debt reduction
Strengthening your cash position

In addition to equipment — software, services, and build-out expenses are also eligible for cash reimbursement.

How it Works

1. Send your invoices to First American

2. First American audits receipts, financial information and provides lease contract

3. Upon acceptance, you receive 100% of the original purchase price of the equipment

4. Fixed payments for your equipment begin

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 faef.com/terms.

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