Raise Capital With Equipment You Own: A Miami Guide
Yes. If your business owns equipment outright, or owns more of it than it still owes, that equity can secure working capital. The two common structures are a sale-leaseback and an equipment refinance. For a Doral contractor with paid-off trucks or a restaurant group with a kitchen line it bought for cash, either one turns an asset already on the balance sheet into cash for the next job, location or payroll gap. Which one fits depends on what you own, what you still owe on it, and what the cash is for.
Why your equipment is worth a second look
Most owners think about equipment financing once, when they buy. After that the truck, the excavator or the walk-in cooler is just a line on the balance sheet. But if it holds resale value and it's paid down, a funding partner can lend against it, the same way a home holds equity.
That matters because the alternative many owners reach for when cash is tight is a daily-payment advance. Borrowing against equipment you own is usually a slower, more documented process, and it's often the better structure for an established business that wants to stay bankable for its next SBA or bank loan.
Sale-leaseback vs. refinancing: which structure fits?
| Sale-leaseback | Equipment refinance | |
|---|---|---|
| Who owns the equipment | The funding partner buys it; you lease it back and keep using it | You keep the title |
| How it works | Lump sum now, lease payments after | A new loan against the equity; any old balance is paid off first |
| What changes on your books | The asset leaves your balance sheet; a lease takes its place | The asset stays; a new loan and lien replace the old one |
A sale-leaseback frees the most cash from equipment you own outright, but you give up ownership. An equipment refinance keeps the asset yours and works even when there's still a balance on the original loan. Both change your balance sheet and your taxes differently, so run the choice past your CPA before you sign.
How funding partners value your equipment
Lenders look at two numbers:
| Value | What it means |
|---|---|
| Fair market value (FMV) | What the equipment would sell for on the open market today |
| Forced liquidation value (FLV) | What it would bring at a quick sale or auction; the conservative number underwriters lean on |
Your funding limit is set by those values, not by what you paid. To support them, have ready:
- Titles (vehicles and titled equipment)
- Purchase invoices
- Maintenance and service records
What equipment qualifies
Eligibility comes down to resale demand and condition, not the original sticker price. Equipment that commonly qualifies:
- Heavy equipment: excavators, loaders and paving gear used by contractors
- Commercial vehicles: box trucks, delivery vans, service trucks and fleets
- Medical and dental equipment: diagnostic machines and operatory chairs
- Commercial kitchen equipment: cooking lines and refrigeration for restaurant groups
Older equipment can still qualify if it's well maintained and there's a market for it.
How it works with Bayside
- Review. We look at what you own, what you still owe on it, and your other debt.
- Valuation. Where a lender needs it, the equipment gets a professional valuation.
- Comparison. Your Capital Strategy Report lays out every option you qualify for, equipment-backed or not, with the real cost of each.
- Decision. You pick the structure that fits your cash flow, and we stay with you through the life of the facility.
Equipment-backed funding isn't always the right answer. Sometimes a line of credit or an SBA loan is cheaper. The point of the report is that you see them side by side.
Find out what you actually qualify for · Equipment financing
Frequently asked questions
What is an equipment sale-leaseback?
You sell equipment you own to a funding partner for a lump sum and lease it back, so you keep using it every day. It turns equity into working capital without taking the equipment out of service.
Can I use equipment that still has a balance on its original loan?
Usually, yes. A refinance pays off the old lien, and the equity above that balance becomes working capital. How much depends on the valuation, what you still owe, and the lender's review of your business.
How do lenders value used equipment?
They look at fair market value and forced liquidation value, and they lean on the more conservative one. Condition, maintenance records, demand for that type of equipment and its remaining useful life all count.
How long does it take?
It depends on the equipment, whether it needs a valuation, and the lender. We'll tell you what to expect once we've reviewed what you own.
What does it cost?
It depends on the structure, the equipment and your business's numbers. Your Capital Strategy Report shows the real cost of each option side by side, so you can compare an equipment-backed deal against everything else you qualify for.
Who does Bayside work with?
Bayside works with established businesses, usually with at least two years in business, around $40K or more in monthly revenue, and a funding need of $100K or more. What each lender requires depends on the product.
