Sale & leaseback
The funder buys an asset you own and finances it back on HP or lease. Repayments typically follow remaining useful life. At term-end: purchase, roll, sell (retaining some proceeds) or return.
- Range
- By asset equity
- Term
- Remaining useful life
- Family
- asset
- Search
- Full market, one file
At a glance
- Free cash from owned assets
- Keep using the equipment
- HP or lease back
- Useful-life terms
How it works
- 1The funder buys an asset you already own and finances it back to you on HP or lease.
- 2You keep using the equipment. Cash lands in the business.
- 3Repayments typically follow remaining useful life.
- 4At term-end: purchase, roll, sell (retaining some proceeds) or return — depending on HP vs lease.
Who it’s for
- Companies sitting on unencumbered plant, machinery or vehicles
- Businesses that need working capital without selling the kit
Good to know
Valuation and proof of ownership/title are the starting documents.
Age and condition drive how much can be released.
One application with QED searches the full market. That saves you running the same file around several lenders, and it avoids multiple credit searches on the business and directors. A hard search is only placed when you proceed with a chosen lender.
Hire purchase vs finance lease vs sale & leaseback
Tax treatment depends on the agreement and current HMRC rules — confirm with your accountant. Comparison drawn from qedfinance.com/assetfinance.
What it is
Hire purchase
Buy the asset in instalments. Title transfers when you exercise the option.
Finance lease
Use the asset without buying it. Funder owns it; you pay rentals.
Sale & leaseback
Funder buys kit you already own and finances it back on HP or lease.
End of term
Hire purchase
Purchase option — you take title
Finance lease
Secondary rental, sell and keep a share of proceeds, or return
Sale & leaseback
Same options as the HP or lease you took back on
VAT (typical)
Hire purchase
Paid with the deposit and with each instalment; reclaim on the capital cost (current rules)
Finance lease
Claimed on the rentals
Sale & leaseback
Follows HP or lease treatment
Tax (typical)
Hire purchase
You are treated as owner — capital allowances often available. Interest may offset profits.
Finance lease
Rentals usually offset against pre-tax profits. No title in the HP sense.
Sale & leaseback
Ask your accountant — it is a sale then a hire/lease back.
Best when
Hire purchase
You want to own the asset and claim allowances
Finance lease
You want use without ownership and a lower initial outlay
Sale & leaseback
You need cash from unencumbered plant, vehicles or machinery
Documents QED will ask for
Same list as the attach-files section on the website application. Tick what you have when you apply; email the rest.
- Last published accounts (full accounts, not abbreviated)
- Latest management accounts if year-end is stale
- Last 3 months’ business bank statements
- Supplier quote, invoice or pro-forma for the asset
- Proof of ownership / V5 / serial numbers (sale & leaseback or refinance)
- Settlement figure if the asset is already on finance
FAQ
Drawn from qedfinance.com and the way the UK market actually underwrites these facilities.
Will this show as a sale?
The funder buys the asset then hires or leases it back. Your accountant should confirm the treatment for your entity.
What if finance is already on the asset?
That is refinance — see asset refinance. Sale & leaseback is for kit you own outright (or can settle first).
What assets can I raise against?
Most types of equipment — plant, machinery and vehicles you already own. Repayments typically follow remaining useful life.
What documents start the file?
Proof of ownership and title, a realistic valuation, and (if there is finance on the asset) a settlement figure. Sale & leaseback is for kit you own outright, or can settle first.
New or used assets?
Both. Hire purchase, leasing, sale & leaseback and refinance can all be arranged against new or used plant, machinery and vehicles, subject to age and residual value.
Can repayments follow seasonality?
Yes. Many funders will structure rentals around seasonal cash flow rather than a flat monthly profile.
Does a low credit score rule me out?
It can limit options with some houses, which is why a broker search matters. QED matches the file to lenders whose criteria fit.
Prefer a number first?
Model an illustrative structure, email yourself a copy, then apply if it looks right.
Open the calculatorQED is a broker, not a lender. A low credit score can limit options with some houses; a search with us does not place a hard search on the business or directors until you proceed with a chosen lender.