Sale-leaseback
The business sells equipment it owns, then keeps using it under a new contract with a lessor. The conditions of use and of the end of the contract are the ones that are written.
Versa CapitalProducts
Equipment refinancing
For businesses in Quebec that already own equipment and want to review its financing.
The product
Two paths already named in the catalogue
The equipment financing page names refinancing, sale-leaseback and renewal strategies. This page describes those paths. It publishes neither an amount nor a residual value.
The starting point is equipment the business already holds, or an equipment contract already under way. A new purchase is treated instead as equipment financing or leasing.
The two paths
Sale-leaseback and renewal
Renewal of the file
A renewal strategy reviews equipment financing that is already in place. The current contract can be replaced by another structure in the catalogue, if a partner agrees to review it. Nothing is settled before a written offer.
Effect on the books
Accounting and tax, with no opinion
The sale of the asset and the new contract can change how the equipment and the payments appear on the books. Versa Capital does not say whether the transaction creates a gain, an expense or a saving. This is not tax advice.
An accountant or a tax advisor must confirm the treatment before signing. If the need is not an asset, but the operating cycle, the catalogue product is instead a working capital loan.
Who it is for
Sectors concerned
The equipment is that of the sectors Versa Capital already finances: construction, agriculture, forestry, medical, transportation, material handling, industrial and food service.
Construction
- Construction equipment
- Excavation equipment
Transportation
- Transportation equipment
Agriculture
- Agricultural equipment
Our approach
Support in five steps
- 1
Understand
Grasp the business, its operations, its industry, its financial position and its ambitions.
- 2
Structure
Build a financing approach suited to the project, the profile and the client objectives.
- 3
Position
Prepare the file and present it to the appropriate financial partners, with its strengths made clear.
- 4
Compare and explain
Compare the options and make their effects easy to understand, so the decision is an informed one.
- 5
See it through
Coordinate the documentation, the negotiation, the signing and the funding, then remain available after the transaction.
More than 20 financial partners. One point of contact to compare and negotiate your options.
FAQ
Common questions
What is a sale-leaseback?
The business sells equipment it owns and continues to use it under a new contract. This is the sale-leaseback already named in the catalogue.
Is refinancing a new purchase?
No. Refinancing and renewal start from an asset already owned or from a contract already in place. Buying an asset the business does not yet have is treated as equipment financing.
Does Versa Capital guarantee an amount released by the sale?
No. No amount is published. The amount, if there is one, depends on the asset, the contract and a written offer from a partner.
Can the form of the contract change at renewal?
It is possible if a partner agrees to review another structure in the catalogue, for example a lease or a term loan. It is not automatic.
Who is this for?
A business that already owns equipment in the sectors Versa Capital finances, from construction to food service.
Is an accounting opinion required?
Yes. The sale and the new contract can change the accounting and tax treatment. An accountant or a tax advisor must confirm it. Versa Capital does not give that opinion.
Contact
Let us talk about your project
Every project deserves a considered structure.
Describe your financing need. An advisor at Versa Capital will contact you.