A sale and leaseback financing transaction is where the company sells it free and clear assets and leases it back  simultaneously.  This article will encompass the following types of industries and discuss its particulars:

Construction equipment, manufacturing equipment, production equipment,  yellow iron,  dump trucks and trailers, agricultural and farm equipment, and other heavy equipment...

These seasoned lenders have come up with many industries standards to make the available credit pretty much standard.  The first area that the lender will consider is the the value of the free and clear asset that is going to be sold and leased back.  Each lender's formula is somewhat similar but usually they will give the value of the  asset anywhere between 50%-70% of the auction value. This auction value will come from trade publications and other standards in the industry for that particular asset.

Once the auction value of the asset is established, the lender will look at the applicant's credit.  Some lenders will consider the credit irrelevant as they focus on the auction value of the asset.  Other lenders will obtain the credit and grade them according. These lenders will come up with  a score and give the applicants different rates depending upon their credit and the asset involved.

The lender will lease these bought assets anywhere between 24-85 months back to the applicant. Additionally, the lender will offer residual buyout clauses anywhere from 25% residual to fair market value of the asset at the end of the lease.

Usually, what is required from the applicant is personal financial statements, a lease application, a summary telling about the deal and its particulars,  and a detailed equipment list identifying the assets to sold and leased back.  Obviously bills of sale and title work will have to be performed by the lender.

The proceeds of the these funds can be used for working capital, debt re-structuring, equipment acquisitons, and paying off judgements and other liens.

Some other unique features of this program is that usually these transactions are usually non -bankable type transactions, usually home ownership isn't required  and poor credit isn't an issue.

In conclusion, please shop around for the best deal for yourself and understand all the particulars of the transaction..