Tips
February 2026
Cash flow is the lifeblood of business. Sometimes, you have plenty of work, but your cash is tied up in assets. You are "Asset Rich, Cash Poor.
You might have a yard full of trucks, yellow machinery, or manufacturing equipment that you own outright (or have almost paid off). Did you know you can unlock that equity without selling the gear?
What is a Sale and Leaseback?
It is a simple but powerful transaction:
- Valuation: We assess your unencumbered assets (e.g., a fleet of excavators worth $500k).
- Purchase: A lender "buys" the assets from you for $500k.
- Cash Injection: You receive $500k cash in your bank account immediately.
- Lease Back: You lease the assets back from the lender over a set term (e.g., 4 years).
- Business as Usual: You keep using the machines every single day.
Why Use It?
- Cheaper Rates: Because the loan is secured by the machinery, the interest rate is significantly lower than an unsecured overdraft or business loan.
- Tax Benefits: The lease payments may be fully tax-deductible (check with your accountant).
- Flexibility: Use the cash to pay ATO debt, buy out a partner, fund a marketing campaign, or purchase stock.
Don't let your equity sit idle in the yard. Contact Geared Finance to put your assets to work for you.
*The information in this post is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Geared Finance, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.
