Sale-Leaseback Financing

Equity sitting in a paid-off generator is equity that is not growing your business. A sale-leaseback converts that iron into working capital without shutting down the power. You sell us the generator at fair market value, we lease it back to you on a fixed monthly payment, and the machine stays exactly where it is, running the same load it has always run. Nothing about the operation changes. The cash shows up in your account.

We fund generator sale-leasebacks from $50,000. The sweet spot is $100,000 to $1,500,000, which covers everything from a single large standby set to a fleet of industrial generators at a manufacturing facility. B and C credit is considered. We are valuing the iron, not just the credit score.

How a Generator Sale-Leaseback Works

The mechanics are straightforward. You submit the generator's details: make, model, year, hour count, maintenance records, and a current photo if available. We order a valuation based on comparable market data for that unit type. If the value supports the deal, we present a purchase price and a lease structure.

You sign a bill of sale transferring title to us. We wire the purchase price to your account. Simultaneously, you sign a lease agreement that lets you continue operating the generator at your facility under a fixed monthly payment for the agreed term, typically 24 to 60 months. At the end of the lease, you can buy the generator back at a predetermined residual price, extend the lease, or return the unit.

No crew shows up. No truck hauls the machine away. The generator stays on its pad, connected to your ATS, running your building. The only thing that changes is who holds the title and where the monthly payment goes.

This is a useful structure for oil and gas operators with significant iron on the books who need capital for a drilling program or a lease acquisition. It is also common for companies that acquired power infrastructure through a business purchase and want to free up capital from equipment they did not choose to buy.

When a Generator Sale-Leaseback Makes Sense

A sale-leaseback is not the right tool for every situation. It is the right tool in a specific set of circumstances:

• You own the generator free and clear and need capital for expansion, payroll, inventory, or another opportunity that yields a higher return than the interest cost of the leaseback.
• You acquired generators through a company purchase and want to monetize the power infrastructure without disrupting operations.
• Your credit is thin or damaged and a conventional working capital loan is not available or is priced too high. Leaseback underwriting is collateral-driven, which helps B and C credit borrowers access better pricing than an unsecured lender would offer.
• You need to keep a line of credit clear for operations. A leaseback raises capital without using your existing bank line or affecting your revolving credit availability.

Buyers planning a data center power refresh sometimes use a leaseback on existing sets to fund the next generation of paralleling infrastructure. The old machines fund the new build-out. That is a capital-efficient sequence, and we have structured it multiple times.

Credit, Docs, and Approval

Sale-leaseback approvals lean heavily on collateral. The generator's condition, age, market value, and transferability of title matter more in a leaseback than in a conventional loan. We still look at credit and cash flow, but a well-maintained, market-valuable set can get deals done that a purely credit-based underwriter would decline.

We need three months of bank statements, a current service record or maintenance log, and the generator's serial number and nameplate data. If the machine has an existing loan against it, we need the payoff statement. A leaseback can pay off a small remaining balance and still leave you with net cash, as long as the generator's value exceeds the payoff amount.

Deals close in one to two weeks from the time we have complete documentation. We move fast because a leaseback is straightforward underwriting: what is the machine worth and can the business carry the monthly payment.

Other Ways to Access Generator Equity

If the generator still has a balance on it, a cash-out refinance may extract equity without a full title transfer. If you are comparing the leaseback against simply borrowing against the machine as collateral, the leaseback typically provides more capital because lenders advance a higher percentage of FMV in a leaseback structure. And if you are considering a sale-leaseback as part of a broader equipment refresh, our equipment loan options on new iron can run in parallel with the leaseback close.