DON'T SELL YOUR EQUIPMENT TO RAISE CASH

“It’s not the resources you have. It’s how resourceful you are with what you have.”

- Tony Robbins

August already?!

The team at DEROTTO hopes you're enjoying the summer. Thank you, as always, for trusting us with your equipment financing needs. August is often a quieter month, making it the perfect time to reassess your business and prepare for the busy season ahead. If you need additional working capital, there's one financing solution many business owners overlook.

Turn Your Equipment Into Working Capital — Without Selling

It If your business owns equipment free and clear, or has significant equity in financed equipment, you may be able to unlock that value through a sale-leaseback. Instead of selling equipment and losing an asset your business depends on, a sale-leaseback allows you to convert that equity into cash while continuing to use the equipment every day. It's an excellent way to improve liquidity without disrupting your operations.

Example:

Let's say your company owns an excavator that's fully paid off and worth approximately $100,000. Depending on the equipment and your business profile, you may be able to access $50,000–$75,000 in working capital through a sale-leaseback, all while keeping the excavator on the job generating revenue.

A sale-leaseback can help you:

• Unlock cash tied up in your equipment

• Keep full use of the equipment your business relies on

• Improve cash flow during seasonal slowdowns or long payment cycles

• Consolidate existing debt into one manageable payment

• Fund growth, payroll, inventory, or new opportunities

• Access capital when traditional financing is limited

• Create tax advantages by converting certain non-deductible debt into lease

payments that can be deductible as a business expense. Many business owners assume selling equipment is their only option when they need cash. A sale-leaseback offers the best of both worlds—you gain access to capital without giving up the equipment that generates your revenue.

If you'd like to explore whether a sale-leaseback makes sense for your business, simply reply to this email. DEROTTO works with lenders that specialize in this type of financing and would be happy to discuss your options.