As the business environment continues to evolve, the demand for innovative financial solutions increases. One effective option is the Lease Buyback. This flexible financial tool enables business owners to access capital by leveraging the equipment they already own. While Lease Buybacks are well-known in financial circles, they are particularly noteworthy for their unique structure and benefits.
Kevin Fagundes, Chief Operations Officer at Express Business Funding, explains how Lease Buybacks work, who they’re for, and why they matter for today’s companies.
What is a Lease Buyback?
A Lease Buyback is a type of financing. In this process, a company sells its equipment that has no loans or liens. Then, the company leases the equipment back from the lender. This unlocks tied-up capital, providing immediate As the commercial environment continues to evolve, the demand for innovative financial solutions increases.
One effective option is the Lease Buyback. This flexible financial tool enables company owners to access capital by leveraging the equipment they already own. While Lease Buybacks are well-known in financial circles, they are particularly noteworthy for their unique structure and benefits.
“Lease Buybacks let businesses access liquidity while keeping their operations running smoothly,” says Fagundes.
Explore equipment leasing options.
Key Benefits of Lease Buyback for Organizational Growth
Capital Injection Without Giving Up Equipment
Unlock the equity tied up in your existing equipment to secure fast access to working capital. You can use this funding to explore new growth opportunities. You can also pay employees, cover supplier invoices, or reinvest in your company. This way, you won’t have to give up the tools and machines that keep your operations running.
Improved Cash Flow and Reduced Operational Costs
Lease Buybacks reduce upfront financial pressure more effectively than traditional commercial loans. They keep monthly payments low and reduce maintenance work. This helps your team focus on daily tasks and keeps cash flow strong. This offers a financing solution for organizations with little borrowing history.
Keep Your Tools and Machines in Use
One of the standout advantages of Lease Buybacks is uninterrupted access to the equipment your company relies on. Leasing back your own equipment helps you stay productive and keep daily operations running smoothly.
Tax Benefits that Help You Save
Lease payments count as operating costs, making it easier to claim tax deductions right away. This can free up additional cash and support your broader financial planning efforts over time.
Talk to a financial expert to understand how tax benefits apply to your scenario.
Accessible to Companies with Credit Challenges
Because Lease Buybacks focus on equipment value instead of credit score, they provide a financing solution to organizations with limited borrowing history. This makes them especially attractive to newer enterprises or those recovering from past financial setbacks.
Support for Scalable Growth
Lease Buybacks provide the flexibility to finance large initiatives, whether that means scaling your team, upgrading infrastructure, or launching a new product and service line. Unlike traditional loans with fluctuating interest rates, this model supports growth without the burden of variable repayment terms.
Predictable Payments for Better Planning
With fixed lease terms, your company can better forecast expenses and maintain tighter budget control. This financial predictability is a key advantage for companies seeking stability in fluctuating market conditions.Talk to a financial expert to understand how tax benefits apply to your scenario.
Accessible to Companies with Credit Challenges
Lease Buybacks rely on the asset value—not your credit history. This makes them ideal for organizations facing credit challenges.
Support for Scalable Growth
Access funds for larger projects, new hires, or expanded marketing—without taking on high-interest debt.
A clear path to company growth: Predictable payments for better planning.
Fixed terms and set lease payments offer predictable payments, helping you maintain financial stability and budget with confidence.
“Lease Buybacks reduce risk and increase financial flexibility for business owners and lenders alike,” says Fagundes.
Which Business Types Can Use Lease Buyback?
A wide range of industries and company sizes can benefit, especially if they:
- Own unencumbered equipment (e.g., vehicles, machines, tools)
- Have limited or poor credit
- Need a capital injection without increasing traditional debt
- Are maxed out on current lending lines and need fresh working capital
Businesses with aging equipment can also use Lease Buyback for effective asset management before replacement is needed.
If you’re not sure whether it’s right for your own business, get personalized advice from one of our financial experts.
Why Lease Buyback Beats Traditional Business Loans
Traditional loans often require full reviews of your bank accounts, credit scores, and financial plans. Lease Buybacks skip that and focus on your equipment’s value, making the process faster and easier. This makes them an ideal solution for companies facing tight market conditions or unpredictable financial markets.
Here are some key takeaways:
- Quicker capital access — Faster funding compared to traditional lending processes.
- Less emphasis on credit history — Perfect for companies with limited credit or prior credit challenges.
- Continued use of your equipment — Avoid disrupting your day-to-day operating needs.
- Predictable payments — Fixed terms help you make more informed decisions around budgeting.
- Lower risk exposure — Equipment serves as collateral, reducing your exposure to high interest rates.
- Flexible use of funds — Support everything from product and service expansion to hiring or new marketing initiatives.
If you are starting a business, Lease Buybacks can help. They can also improve customer service. Additionally, they can assist in responding to market changes in Canada. They allow you to build a successful business model without relying on traditional lenders.
Explore our working capital solutions tailored for Canadian SMEs.
Why Choose EBF?
At Express Business Funding, we offer more than financing—we deliver strategic, responsive support to help Canadian companies grow confidently. We understand the everyday pressures faced by small and mid-sized organizations, especially when traditional financial institutions fall short.
Our specialized services include Invoice Factoring, Asset-Based Lending, Equipment-Based Loans, and DIP Financing. Each solution is designed to match the needs of business owners looking to increase cash flow, manage risk, and scale efficiently—without sacrificing ownership or flexibility.
With Lease Buybacks, we help companies turn equipment into working capital quickly, without credit barriers. This empowers them to take on larger projects, cover operating expenses, or invest in marketing and hiring.
Our team works closely with clients to review financial statements, clarify business goals, and structure financing that supports long-term growth. We pride ourselves on transparent terms, fast approval timelines, and a customer service experience that’s consultative and proactive.
If you are starting a business, facing market changes, or expanding in Canada, we can help. We provide support to help you make smart decisions with real financial solutions.
Discover why so many organizations trust Express Business Funding to strengthen their business model and fuel success.
Ready to Leverage Your Equipment?
Put your equipment to work by converting it into accessible capital. Use a Lease Buyback to improve cash flow, reduce risk, and fund new business opportunities.
Connect with our team today to learn how we can support your business’s long-term financial stability and success.
