Cash released from the machines you already own, with an indicative answer in 2 business days.
- Indicative assessment within 2 business days, with settlement typically 1 to 6 weeks once the equipment is valued
- Facilities from $100K to $5M against plant, machinery, vehicles and equipment the business owns
- Contractors, manufacturers, transport operators, practices and processors with paid-off equipment
- Covers earthmoving and civil plant, production lines, trucks and trailers, medical and processing equipment
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) options across our 90+ lender panel
The business paid for its equipment, and now the cash is tied up in it. The machines are still working, but the money that bought them is not there for a new contract, a tax bill or a larger order. A sale and leaseback releases part of that value. The business sells equipment it owns to a financier, then leases it straight back and keeps using it, paying rentals over an agreed term. Nothing has to leave the site. Joseph Farhat and his team can look at what the business owns, and what it may be valued at. The sale is generally a taxable sale for GST and may have other tax effects, so your accountant is the first call before any agreement is signed.
Who we can help access finance
- Civil and earthmoving contractors with a paid-off fleet of excavators and loaders, who need cash to mobilise for a new contract.
- Manufacturers that bought a production line with cash and now need working capital for a large order.
- Transport operators whose prime movers and trailers are fully owned, wanting funds to add capacity or meet a tax bill.
- Medical imaging, dental and veterinary practices that paid for major equipment outright and want cash for a fit-out or expansion.
- Businesses with a small balance still owing on some equipment, who want it paid out as part of a wider release of cash.
- Owners who want a sale and leaseback compared with a loan secured over the same equipment before they decide.
How Equipment Sale and Leaseback Works
A financier first values the equipment. The price it pays comes from that valuation and its own policy, not from what the business originally paid. The business sells the equipment to the financier, receives the proceeds, and signs a lease or rental agreement for the same items. At the end, depending on the contract, the business may return the equipment, extend the lease or buy it back. If any item still has finance owing, that balance is usually paid out from the sale proceeds so the financier can take clear ownership. Joseph Farhat and his team gather the asset list, coordinate the valuation with the lender, and match the file across our panel of 90+ bank, non-bank, and specialist lenders.
According to the ATO, when a business that is registered for GST, or required to be, sells a capital asset such as machinery, vehicles or office equipment, it is generally a taxable sale. The business accounts for GST on it and reports the proceeds at G1 on its BAS. Part of the sale price is therefore GST that goes to the ATO, so the cash the business keeps is less than the headline figure. How GST applies to the rentals, and how the sale and the rentals are treated for income tax, are questions for your accountant. We are a finance broker, not an accountant or tax adviser.
The financier will also search the Personal Property Securities Register (PPSR), the national register of security over goods. The search shows whether anyone already has a registered interest in the equipment, such as a lender that financed it. Once the lease starts, the financier can register its own interest. If the cash is needed because the business may not be able to pay its debts as they fall due, speak with your accountant or a registered insolvency practitioner before selling any assets.
What Lenders Assess for Equipment Sale and Leaseback
The equipment
type, make, age, hours and condition, and how readily it could be resold if the rentals stopped.
The valuation
an independent or lender-arranged valuation sets the amount released, which can differ from the purchase price or the book value.
Clear title
proof the business owns each item, the original invoices, and a PPSR search showing any interests that need to be released.
Rental affordability
whether trading income covers the new rentals on top of existing commitments, since the equipment is no longer owned outright.
Working life left
the equipment needs enough useful life to outlast the lease, which shapes how long the term can run.
Purpose of the cash
what the released funds will do, such as a contract, stock, a tax bill or expansion.
Trading record
time in business, recent BAS and bank statements, and tax lodgements that are up to date.
The Equipment Sale and Leaseback Process: What to Expect
- Send Joseph Farhat and his team a list of the equipment the business owns, with make, model, year, hours and any finance still owing, and tell us what the cash is for.
- Speak to your accountant about GST on the sale and the tax treatment of the sale and the rentals before you commit. We can share the indicative figures so that conversation has numbers to work from.
- We approach lenders on the panel whose policy suits your type of equipment. The chosen lender arranges a valuation and runs a PPSR search.
- The approval sets out the price, the lease term, the rentals, fees, any end-of-term option and any guarantee. We go through each line with you before anything is signed.
- Any existing finance is paid out, the sale settles, the proceeds reach the business and the lease begins. The equipment stays where it is and keeps working.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7.5% p.a. | Ownership of the equipment, plus a director guarantee | $250K to $5M | 2 to 5 years | 2 to 6 weeks |
| Non-Bank Lenders | From ~10% p.a. | Ownership of the equipment, plus a director guarantee | $100K to $3M | 1 to 5 years | 1 to 3 weeks |
| Private Finance | Not typically used for equipment sale and leaseback. Available for unique scenarios. | ||||
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for equipment sale and leaseback
We represent you, not the lender
Joseph Farhat and his team act for your business from the first asset list through to the start of the lease.
A realistic figure before you plan
we look at how lenders are likely to value your equipment before you build a budget around the proceeds.
Leaseback and secured loan side by side
we set out the cash released, the cost and who owns the equipment under each, so you and your accountant can compare.
Lender appetite by equipment class
some financiers favour earthmoving plant and trucks, others production or medical equipment.
Your accountant leads on tax
GST on the sale and the income tax treatment stay with your accountant, and we work to the finance option they are comfortable with.
One conversation, not several applications
each credit enquiry is recorded on your file, so the first lender approached should already fund your type of equipment.
90+ lenders on one panel
bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate and older or specialised equipment still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the cash is needed for a contract start or a tax due date, tell us the date on the first call and we will say what is realistic by then.
Frequently asked questions
What is an equipment sale and leaseback?
It is a way to release cash from equipment a business already owns. The business sells the equipment to a financier and leases it back, so it keeps using it while paying rentals over an agreed term. When the term ends, depending on the contract, the equipment may be returned, the lease extended or the equipment bought back. It suits businesses holding valuable plant, machinery or vehicles that are fully paid for.
How is a sale and leaseback different from borrowing against the equipment?
The difference is ownership. In a sale and leaseback, the financier buys the equipment and owns it for the term of the lease. With a loan secured over the equipment, the business stays the owner and the lender holds security over it. Pricing, terms, GST and tax treatment differ between the two. Joseph Farhat and his team can lay both out side by side, and your accountant can say which suits the business.
How much cash can a sale and leaseback release?
It depends on the valuation and the lender. The financier values the equipment and decides how much it will pay against that value, using its own policy for the equipment type, age and condition. The figure can be well below the original purchase price or the book value in your accounts. Joseph Farhat and his team will give you an indicative range once they have the asset list.
Is GST charged on the sale of the equipment?
Generally, yes, for a business registered or required to be registered for GST. The ATO describes the sale of a capital asset such as machinery or vehicles by that business as generally a taxable sale, with the proceeds reported at G1 on the BAS. Your accountant confirms the GST position on the sale and on the rentals, and any income tax consequences, before you sign.
How does the PPSR come into a sale and leaseback?
In two ways. First, a PPSR search shows whether anyone already has a registered interest in the equipment, such as a lender that financed it. That interest normally has to be paid out or released before the sale settles. Second, once the lease starts, the financier may register its own interest. A lease from a lessor that regularly leases goods, for a term of more than two years, is a PPS lease, a type of security interest that can be registered on the PPSR.
Is a sale and leaseback a fix for cash flow problems?
It releases cash once. After that, the business pays rentals for the rest of the term and no longer owns the equipment. If the cash is needed because the business may not be able to pay its debts as they fall due, speak with your accountant or a registered insolvency practitioner before selling any assets. That decision belongs with them, not with a lender or a broker. Where the need is a contract, an order or a planned expense, Joseph Farhat and his team can look at whether the rentals fit the cash flow.
Can I get a sale and leaseback on low-doc?
In some cases. Some non-bank financiers will consider a sale and leaseback on recent BAS, business bank statements and an accountant's letter rather than full financials, particularly for mainstream equipment that resells well. Expect a lower amount or a higher rate in exchange for less paperwork. Banks generally ask for full financials and usually price lower in return. Joseph Farhat and his team can tell you which financiers accept the documents the business already has.
Do you work with borrowers with bad credit?
Yes, we do. A default, a reported tax debt or a judgment against the business or a director does not rule out a sale and leaseback, and you will not be judged for it. A listing says little about the condition of your equipment or the work it is doing. Because the financier owns the equipment during the lease, several lenders on our panel weigh its value and your current trading more heavily than the credit file, and will price for the risk rather than decline it. Telling us early means we approach the right financier first instead of adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your equipment sale and leaseback?
Because you get one conversation instead of a round of applications. Most of the people we help with a sale and leaseback are business owners and company directors with paid-off equipment and a dated need for cash: a contract that needs mobilising, a large order to fund, a tax bill, or growth the business account cannot carry. Those situations are not unusual to us and there is no judgement in the conversation. What lenders weigh is the equipment, its value and working life, a clear title on the PPSR, and whether trading covers the rentals. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate, and there are still options when the equipment is older or the timing is tight. We are based in Sydney and work with businesses Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistic in your timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with equipment sale and leaseback outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges equipment sale and leaseback Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Joseph Farhat and his team will find the lenders on the panel that fund your class of equipment.
