Consider the example of a large manufacturing company that historically paid cash for equipment but had a need for capital. FNB developed a solution that enables the client to extract the equity in their equipment through a sale leaseback. The team appraised the equipment, purchased it and immediately leased it back to the client, delivering several clear advantages:
Absolute certainty regarding the all-in cost of owning equipment outright.
Ability to raise capital, generally without disturbing existing loan agreements.
Potential to claim 100 percent bonus depreciation, or to generate further cash with a subsequent sale by buying back the equipment before the lease's end.
