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Industrial & manufacturing · Published project support

Sale-leaseback of a paid-off production machine to rebuild cash

A manufacturer sold a paid-off production machine to a financing institution and leased it back over 48 months, keeping it in production throughout.

Published amount or program scope
$57,300–$115,000
Historical term
48 months
Support status
Published project support
Abstract editorial illustration for understanding equipment lease agreements
Illustrative image, not a photograph of the client or project.

The equipment need

A manufacturer contacted Leaseworld to explore a sale-leaseback on one of its production machines.

The machine had been paid for out of the company's own funds and represented significant value on its balance sheet without generating any cash.

The company wanted to raise cash for its operations without selling the machine outright or stopping production.

Another bank credit request was not its preferred route, given the commitments already in place.

  • Production machine already owned by the company

The support described in the project

Leaseworld had the machine appraised to establish its market value and the amount the transaction could cover.

The financing institution bought the machine and leased it back to the company under a sale-leaseback agreement.

The term was set at 48 months, consistent with the machine's remaining service life.

The company kept full use of the machine throughout the contract.

An end-of-term purchase option allows it to regain full ownership of the equipment.

The reported operational outcome

The sale proceeds were paid to the company and went straight into its cash position.

Production was never interrupted: the machine did not leave the shop floor.

No additional collateral on the company's other assets was required.

Applying the experience to a new project

Use this case to identify the equipment, timing and ownership questions relevant to your own investment. The historical scope and term are specific to the project described. For a new U.S. project, identify the contracting business, installation state, supplier quote and preferred use period; available structures require a separate assessment.

About this case study

Published 2026-09-19 by the Leaseworld editorial team. Identifying details are withheld. Historical budgets and requested terms do not establish eligibility or an offer for another applicant.

Amounts shown in U.S. dollars are rounded equivalents for comparison using a reference rate dated September 18, 2026. They are not current equipment prices or financing offers. The original project agreement determines its legal, tax and accounting treatment.

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