Equipment financing and sale-leaseback
Equipment financing: use the collateral you already own
Finance new equipment without touching your bank line — or convert paid-off machines into cash while they keep running. Typical schedules land in the 7–9% range. The calculator is illustrative.
The machine stays on the floor. The cash does not.
Sale-leaseback and new-asset schedules at 7–9% typical. The operating line stays for inventory and AR.
Sale-leaseback
A paid-off machine is cash on the floor.
The lessor purchases at fair market value. Cash hits your account. You keep operating under a lease. Title reverts or is repriced at term end.
01
You own a paid-off $400K CNC
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Lessor purchases it at fair market value
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$400K cash to you (illustrative)
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You keep operating it under a lease
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Title reverts or is repriced at term end
What we finance
Shop-floor assets a lessor can actually underwrite.
- CNC and machine tools
- Presses and stamping
- Material handling and forklifts
- Trucks and trailers
- Packaging lines
- Welding and fabrication
- Shop-floor tech and automation
- Tooling
Comparison
Finance versus cash versus the bank.
| Equipment finance / lease | Cash | Bank line | |
|---|---|---|---|
| Uses the operating line | No | Yes — permanently | Yes |
| Typical cost | 7–9% (illustrative) | Opportunity cost of inventory turns | Prime +, if you have headroom |
| When it’s wrong | Obsolete inside the term | When cash earns more in inventory | When the line is already funding AR |
Financing an asset at 7–9% while working capital earns a higher return in inventory turns is usually the correct trade. It isn’t, when the machine will be obsolete inside the term, or when you already have cheap unused bank headroom earmarked for capex.
Who this is not for
- Assets that will be obsolete inside the term
- Companies with unused cheap bank headroom already earmarked for capex
Asset-based finance industry assets: $450B1. That is market scale, not a Novaline AUM claim.
Do we have to stop using the machine in a sale-leaseback?
No. The lessor purchases at fair market value, cash hits your account, and you keep operating under a lease. Title reverts or is repriced at term end.
When is financing the wrong trade versus cash?
When the after-tax cost of the lease exceeds what that cash earns in inventory turns, or when the asset will be obsolete inside the term. We say so.
What rates should we plan around?
Equipment schedules commonly land in the 7–9% range. The calculator on this page is illustrative. The lessor’s term sheet is the quote.
Does this use the operating line?
No. That is the point of a separate equipment schedule.
What assets do you place?
CNC and machine tools, presses, material handling, trucks and trailers, packaging lines, welding and fabrication, shop-floor automation, and tooling.
Are you the lessor?
No. Novaline is an intermediary. Leases are provided by third-party lessors.
Who is this not for?
Assets that will be obsolete inside the term, and companies with unused cheap bank headroom already earmarked for capex.
Is commercial real estate on this page?
No. Commercial real estate is referred to licensed brokerage partners.