Sale-Leaseback Financing

Paid-off imaging equipment sitting in an active room is capital sitting in steel and glass. A sale-leaseback converts that capital into cash without disrupting a single exam. The structure is direct: we purchase your owned equipment at an agreed value, you receive a lump sum, and you immediately lease the same equipment back at a monthly payment. The room keeps running, the patients keep coming in, and the practice gains liquid capital that can go toward expansion, renovation, staffing, or any other operational priority.

Sale-leasebacks work on equipment that is owned free and clear, meaning no outstanding loan or lien on the asset. The value we can advance is based on the equipment's current market value, which we determine through our underwriting process rather than a formal third-party appraisal in most cases. Radiographic and fluoroscopic systems, DR rooms, mammography units, C-arms, and full imaging suites all qualify when owned outright.

How a Sale-Leaseback Is Structured

The transaction closes in two simultaneous steps. First, we purchase the equipment from your practice at an agreed value and wire the funds to your practice bank account. Second, we execute a lease agreement that grants the practice the right to continue using the equipment for the lease term, with monthly payments replacing the prior zero-payment owned status.

Lease terms on sale-leasebacks typically run 24 to 48 months, reflecting the remaining useful life of used equipment. Monthly payments are calculated on the advance amount and the term. At the end of the lease, you typically have an option to purchase the equipment at a predetermined residual value, continue the lease, or return the equipment. Most practices exercise the purchase option, since the equipment is already integrated into the workflow.

• Equipment must be owned free and clear (no existing liens)
• Advance amount based on current market value of the equipment
• Funds typically arrive within ten to fourteen business days
• Monthly lease payments begin after closing
• End-of-term purchase option available in most structures

Who Uses Sale-Leasebacks

The most common scenario is a practice that financed equipment several years ago, paid it off, and has been running it free and clear. The equipment still works, still generates revenue, but the practice now needs capital for a different project: a second location, a building renovation, a new hire, or adding a different imaging modality. Selling the equipment to fund the new project would disrupt current operations. A sale-leaseback captures the value without the disruption.

Orthopedic practices that own a C-arm outright, imaging centers that finished paying off a DR room while keeping it productive, and hospital outpatient departments with paid-off equipment on aging balance sheets all represent common sale-leaseback candidates. The transaction also appears in practice acquisition contexts where a buyer inherits equipment without an existing obligation and wants to release that equity to fund the acquisition cost.

Practices that recently bought equipment with cash and want to recover that capital also use sale-leasebacks. The cash-buy-then-leaseback structure is a legitimate way to act quickly in a seller's market on equipment, then recover the purchase price through the leaseback within a few weeks.

Equipment Age and Value

The advance amount on a sale-leaseback is a function of the equipment's current market value, not its original purchase price. Imaging equipment depreciates, and the market for used systems varies by manufacturer, model, age, and condition. A well-maintained DR room from a major manufacturer with documented service history holds value better than older off-brand equipment with gaps in maintenance records.

We do not publish a schedule of equipment values because the secondary market for imaging hardware is dynamic and model-specific. What we do is review the equipment details you provide, compare against known secondary market data, and come back with an advance offer. The offer reflects what a buyer in the secondary market would reasonably pay for the equipment, which is the number that supports the leaseback advance.

For equipment that has very low residual value, a sale-leaseback may not produce enough capital to justify the transaction. We are direct about when that is the case. If the advance would only recover $20,000 on equipment that once cost $200,000, the math usually does not serve the practice's capital needs well. In those situations, a different capital source is often more appropriate.

When to Consider Alternatives

If the equipment you want to monetize still has an outstanding loan or lease balance on it, a sale-leaseback is not the right structure. For that situation, look at cash-out equipment refinancing, which refinances the existing obligation while advancing additional cash based on the equipment's equity above the payoff. The mechanics differ but the goal, accessing equipment equity, is the same.

If your practice is looking to upgrade the equipment rather than retain it, selling into the secondary market and financing a replacement is usually cleaner than a leaseback on a system you intend to dispose of within the lease term. We can help structure the replacement financing in that scenario. For practices that need capital but do not want to monetize equipment at all, see our comparison of working capital versus equipment financing to understand which source fits each use case.

If you are considering a sale-leaseback on a mammography system or another high-value specialty imaging asset, the key issue is establishing a realistic value. Specialty imaging equipment with narrow secondary markets may advance at a higher percentage of purchase price on a leaseback because it retains value well in active practices.

Get a Sale-Leaseback Offer

Tell us what imaging equipment you own free and clear: manufacturer, model, year, and current condition. We will come back with an advance offer and lease payment estimate. The initial review is informal, no cost, and does not require a credit pull.

Related Financing Paths