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 

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