Sometimes you’re "asset rich" but "cash poor." You might have $200k worth of paid-off equipment, but your bank account is thin because you’re waiting for customers to pay their invoices.
This is where a Buyback and Lease comes in. It’s a way to turn your equipment back into cash while still keeping it on the job.
How it Works: A Step-by-Step Example Imagine "Pete," who runs a landscaping business. Pete owns three excavators outright-he doesn't owe a cent on them. They are worth about $150,000 total. Pete wins a massive new contract for a housing estate, but he needs $50,000 upfront to hire two new staff and buy all the plants and soil.
- The Valuation: Geared Finance gets Pete’s excavators valued.
- The Cash Injection: A lender "buys" the excavators from Pete and puts $50,000 (or more) into his bank account.
- The Lease: Pete now pays a monthly "rent" to use his own excavators.
The result? Pete has the $50,000 he needs to start the big job. Through this Buyback and Lease arrangement, the excavators never left his yard. He uses them to do the work, and the profit from the new contract easily covers the new monthly lease payment.
Why Do Business Owners Use This?
- To Clear Tax Debt: Use the gear you own to pay the ATO and get them off your back.
- To Buy More Gear: Use the cash from one old machine as a deposit for three new ones.
Emergency Buffer: Build that "3-month safety net" so you can sleep at night.
