SALE AND LEASEBACK
Unlock the capital tied up in your equipment.
Sell machinery you already own to Capexo and lease it straight back. You keep using it without interruption, and the cash goes into your business.
₹25L-₹100Cr
Transaction size
Zero
Operational downtime
45
+
Asset types
CASH RELEASED
EXAMPLE
₹3.5Cr
from an injection moulding line the business already owns
Your business
Sells the asset
Pays the sale value
Leases it back
Fixed monthly rentals
Capexo
The machine never leaves your floor.
WHAT CHANGES
Same machines. More cash. No new loan.
A sale and leaseback swaps an asset sitting on your books for cash in the bank, while the asset keeps working on your floor.
BEFORE
Equipment on your books
₹3.5Cr
Cash in the business
—
New bank debt
—
Machine in daily use
Yes
Monthly outflow
—
AFTER A SALE AND LEASEBACK
WITH CAPEXO
Equipment on your books
₹0
Cash in the business
+₹3.5Cr
New bank debt
None
Machine in daily use
Yes
Monthly outflow
Fixed rental
Illustrative example. Accounting treatment depends on your reporting framework and on whether the transfer qualifies as a sale under Ind AS 116. Confirm with your auditor.
WHEN IT MAKES SENSE
Built for businesses with capital stuck in assets.
Four situations where our clients most often use a sale and leaseback.
01
Fund an expansion
Put the value of existing machines towards a new line, a new plant or more capacity, without a fresh term loan.
TYPICAL FOR
New production lines
02
Strengthen working capital
Free up cash for raw material, inventory and receivables when growth stretches the cash cycle.
TYPICAL FOR
Seasonal or fast-growing businesses
03
Replace costlier borrowing
Use the proceeds to retire short-term or high-interest debt and simplify your liabilities.
TYPICAL FOR
Debt restructuring
04
Open a new site
Fund a new location, store rollout or acquisition with capital already sitting in your current assets.
TYPICAL FOR
Multi-location businesses
COMPARED
Sale and leaseback,
or a term loan?
Both raise money from equipment. They work very differently on your books.
Sale and leaseback
Secured term loan
What you do with the asset
Sell it and lease it back
Pledge it as collateral
New debt on the balance sheet
No term loan added
Yes, a new loan
Bank lines
Stay free for working capital
Used up by the loan
Tax treatment
Rentals deductible as an expense
Interest and depreciation deductible
Use of the asset
Unchanged, it stays on your floor
Unchanged
Use of funds
Any business purpose
Often restricted by end-use terms
A CLEAR PATH TO FUNDING
How a sale and leaseback works.
You tell us which assets you own. We value them, buy them at an agreed price and lease them straight back to you.
Share your asset list
Tell us which machinery or fit-outs you own, with invoices and their current condition.
Valuation and assessment
We value the assets and review your financials, then agree the sale price and lease terms.
Sale and payout
You sign the sale and rental agreements. We pay the agreed value into your account.
Rentals and end of term
You keep using the assets and pay rentals as scheduled. At the end, return, re-rent or buy them back.
WHAT QUALIFIES
Assets you own
and use every day.
If it's productive, owned outright and in good working condition, it can usually be part of a sale and leaseback.
Owned outright
Clear title, with no existing loan or lien on the asset.
Invoices available
Original purchase invoices to support the valuation.
In active use
Working equipment with useful life beyond the lease term.
Business-critical
Assets your operations depend on, not idle or surplus stock.
COMMONLY LEASED BACK
CNC and machining centres
Production and packaging lines
Robotics and automation
Material handling
IT hardware and servers
Office and retail fit-outs
Medical equipment
Questions businesses ask.
The final structure depends on your business profile, the assets and their valuation, and credit assessment.
You sell the asset to Capexo instead of borrowing against it, so there is no new term loan on your books. You pay a fixed rental to keep using it.
Productive business assets you own outright, such as machinery, production lines, fit-outs and IT hardware, with clear title and invoices.
Yes. The assets stay where they are and keep running. Only the ownership moves to Capexo for the lease term.
It depends on the assets' current market value, their age and condition, and your credit profile. We share an indicative value after reviewing your asset list.
Yes. At the end of the lease term you can buy the assets back, renew the lease, or return them.
Have equipment that could fund your growth?
Share your asset list. We'll show you how much capital a sale and leaseback could release.