Unlock Your Business’s Potential with Cash Services

Boost Your Business Finances: Discover Sale-Leasebacks and Working Capital Loans

By Beacon Funding| Sep 11, 2023| 792 Views
Unlock Your Business’s Potential with Cash Services

Need a quick way to get more money for your business?

When your business is running low on cash and you need more money for expenses or to make more profit, you have options to pump cash into your business.

One option is using the equipment you already own to get the money you need with a sale-leaseback. And the best part is, you can still keep using the equipment to generate profit. Or if you find a way to make money quickly, there’s a working capital loan for you.

In this article, we’ll explain two ways to quickly pump more cash into your business.

In this article…

  1. How a Sale-Leaseback Works
  2. Case Study: Unlocking Cash with Sale-Leaseback
  3. Apply for a Sale-Leaseback
  4. How a Working Capital Loan Works
  5. Case Study: Unlocking Cash with Working Capital
  6. Apply for a Working Capital Loan

Let’s look at each of these cash services in detail, starting with the sale-leaseback.

How a Sale-Leaseback Works

Leveraging equipment you already own is a great way to get cash. That’s where a sale-leaseback comes into play. It allows you to unlock the equity in your equipment and get the cash you need.

This unique financing solution offered by Beacon Funding allows you to leverage your equipment as collateral for a loan, providing you with the funds while retaining full operational control of your assets.

Whether you recently purchased equipment or have been using it for some time, a sale-leaseback can be a cost-effective and seamless way to unlock the potential of your business.

Benefits of Sale-Leaseback Financing

When it comes to the perks of opting for sale-leaseback as opposed to other financing alternatives, there’s a lot of advantages waiting to be unraveled:

Paying Less for Loans: Say goodbye to expensive debts. With sale-leaseback, you can settle those high-cost loans and save more money.

Getting More Cash Flow: Injecting extra money from the sale-leaseback can really help keep your cash flow steady and healthy.

Still Make Money: Don’t worry about losing your equipment. You get to keep it and make money from it, just like before.

Quick Cash: Need money fast? With a sale-leaseback, you could have money in your hands within 3-5 business days, ready to give your business a boost.

Case Study: How Beacon Funding Helped a Customer with Sale-Leaseback

Chase Cane, Senior Financing Consultant at Beacon Funding, helped his customer receive cash for various needs while he maintained possession of his equipment to keep generating revenue.

Business Problem: One of Chase's clients buys and sells a lot of equipment. They usually pay cash, use their equipment for a while and then resell it before it loses too much value. They ended up purchasing a stump grinder and realized it would be a great additional revenue stream for their business.

However, they didn't want to miss out on receiving that cash stream. They wanted to keep their equipment but still leverage its equity for cash. 

Solution: After talking and getting to know his client’s business, Chase did a sale-leaseback for him. Not only were they able to keep their stump grinder and use it for their business, but they also squeezed out cash from the equipment’s value. He was able to use it for future equipment purchases and business investments.

The results: The sale-leaseback was a perfect solution to help Chase's customer’s business stay liquid and help him diversify his revenue stream while – at the same time – expand his business.

Steps in a Sale-Leaseback

  1. You sell your equipment to a finance company and get cash.
  2. You still use the equipment by leasing it back for a while.
  3. You can use the cash for your business.
  4. You pay small amounts every month for leasing.
  5. After leasing, you own the equipment again.
  6. You can get a loan up to 60-70% of your equipment’s value.

Sale-Leaseback Guidelines

When it comes to qualifying and figuring out the cash you can get, there are some important pointers to consider:

Recent Equipment Purchases (Less than 90 Days): If you’ve bought equipment within the last 90 days, you could be eligible for a cash amount ranging from 80% to 100% of what you paid for it.

Equipment Bought Earlier (More than 90 Days): Equipment that’s been part of your setup for over 90 days might fetch you a cash sum ranging from 60% to 80% of its estimated market value.

Cautions with Encumbered Assets: Keep in mind that equipment that’s heavily tied up with loans from other lenders might not be the best fit for a sale-leaseback deal.

Apply for a Sale-Leaseback

The application process for a sale-leaseback is quick and simple*.

Here’s how it works:

  1. Submit the Form. Fill out a form with your info and equipment details.
  2. Talk to an expert. Wait for a call from a Beacon Funding consultant (within 24-48 hours).
  3. Receive approval. If you qualify, you’ll get an approval letter with loan info.
  4. Receive cash. Sign papers to get the money in 3-5 business days.


Disclaimer about Sale-Leaseback

*All transactions subject to Beacon Funding credit approval. This program may not be available to start-up businesses. Eligibility is based on a variety of factors such as your industry and equipment type. Qualify for a loan of up to 60-90% of the value of your equipment. Contact your Beacon Funding financing consultant for additional details.

What is a Working Capital Loan?

It’s a short-term, unsecured loan that provides cash. These loans often have a good return on investment because the cash can be used for quick-turnaround investments.

With a working capital loan, you can:

Launch a new project. Secure the necessary funds to kickstart that innovative project or product line you've been planning.

Expand your initiatives. Take your business to the next level by expanding into new markets, opening additional locations, or broadening your product or service offerings.

Purchase materials. Ensure a steady supply of raw materials or inventory to meet increasing customer demand or to take advantage of bulk purchase discounts.

Keep your daily operations running. Cover day-to-day operational expenses, such as payroll, rent, utilities, and insurance, to maintain your business's stability.

Clean accounts payable. Settle outstanding bills and accounts payable promptly, maintaining good relationships with suppliers.

Order needed supplies. Invest in essential equipment, machinery, or tools to enhance productivity, quality, or efficiency in your operations.

Pay sudden unexpected costs. Life is full of surprises, and the business world is no different. A working capital loan can serve as a financial safety net for unexpected expenses, such as emergency repairs or legal fees.

Fix essential repairs. Don't let equpment breakdowns or facility issues disrupt your operations. Use the loan to repair or upgrade crucial assets to ensure smooth business continuity.

How a Working Capital Loan Works

If your business is growing and you see an opportunity to expand, those decisions don’t always come with long windows of opportunity. When the need arises to hire more team members, offer a new service, or expand to a new location, they need to be able to act quickly to get the cash they need.

Benefits of Working Capital Loans

  • Qualify up to $250,000.
  • Works across a variety of industries.
  • Quick approvals, fast funding.
  • Daily, weekly, and monthly repayment plans.
  • Fast and easy renewal process.

When your business suddenly needs money for unexpected costs or wants to seize a great chance for growth, Beacon Funding’s working capital loan is here to support you. This loan provides the cash your business requires.

Case Study: Unlocking Cash from Equipment with Beacon Funding

Over two and a half years, Beacon Funding's Senior Financing Consultant Jack Piazzi built a partnership with a repeat customer in Alaska. Jack used working capital to buy and sell used equipment quickly. He was using working capital to gain a profit by flipping trailers.

This transaction was the first working capital deal Jack had done for him: The customer had just completed a bucket truck deal and was traveling from Alaska to California to pick up a truck. While he was down there, he planned on staying in California for three or four days.

On the second day, he saw trailers that were priced very low compared to the prices he usually sees in Alaska. So, he thought he could flip them for a fast profit… but he didn’t have enough cash on hand to buy the trailers.

So, he gave Jack a call and he was able to get him the cash within 24 hours with a working capital deal.

The results

A quick buck: Jack's customer got the funds he needed fast, purchased the trailers, transported them to Alaska, and sold them for a quick profit.

The customer was thrilled about how fast he sold the trailers (as they’re in high demand in Alaska) and said he said he would do it again.

Applying for a Working Capital Loan

The application process for a working capital loan is quick and simple*.


Renewal Process for a Working Capital Loan

The renewal process is very simple. It’s the standard layout as a renewal for a regular loan, but it’s much quicker (even less than 24 hours).

After you call Beacon Funding, you get some paperwork done, and boom! The money is in your account.

Disclaimer about Working Capital Loans

*All transactions subject to Beacon Funding credit approval. This program may not be available to start-up businesses. Eligibility is based on a variety of factors such as your industry and equipment type. Qualify for a loan of up to 60-90% of the value of your equipment. Contact your Beacon Funding financing consultant for additional details.

Beacon Funding
Beacon Funding

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Since 1990, small businesses nationwide have been able to grow with fast affordable equipment financing from Beacon Funding.