How a Sale-Leaseback Strategy Helps You Navigate Tariffs & Economic Challenges

In today’s challenging economic environment, marked by tariffs and fluctuating costs, CFOs are seeking innovative ways to maintain liquidity and financial stability. Tariffs and fluctuating market conditions can strain a company’s financial resilience, making it essential to implement strategies that enhance operational flexibility. A sale-leaseback arrangement offers a strategic solution—unlocking capital tied up in unencumbered equipment to provide immediate cash flow without disrupting operations.

Have you considered how your company’s tariff strategy aligns with unlocking dormant capital? Let’s take a look at how a sale-leaseback strategy could be the key to strengthening your financial position and navigating uncertain economic landscapes more effectively.

What is a Sale-Leaseback?

A sale-leaseback is a financial transaction where a company sells its owned equipment to a buyer, typically a financing provider, and then leases the same equipment back for continued use. This allows businesses to free up cash tied to assets without disrupting daily operations. Simply put, you can access the value of your equipment while still leveraging it to run your business.

This approach converts equipment ownership into immediate liquidity, without the need to physically remove or interrupt its use. It’s a flexible and efficient financial strategy for companies seeking capital to fuel growth initiatives, reconcile debts, or absorb financial shocks such as tariff increases.

Why Consider a Sale-Leaseback Strategy?

The sale-leaseback approach is more than just a financing alternative—it’s a tool that offers unique benefits tailored to today’s business challenges. Here’s why it might be the right move for your company.

1. Immediate Liquidity

• Quickly unlock cash tied to unencumbered equipment.
• Strengthen your balance sheet while improving cash flow.

2. Operational Continuity

• Keep utilizing the equipment essential to your day-to-day operations.
• Avoid disruptions to productivity and maintain overall efficiency.

3. Financial Flexibility

• Redirect the capital towards growth opportunities, reducing debt, or mitigating tariff impacts.
• Establish reserves to confidently respond to market changes and emerging opportunities.

With tariffs squeezing profit margins, having immediate access to liquid capital can provide the breathing room your business needs to adapt and grow.

How 36th Street Capital Can Help

At 36th Street Capital, we provide customized equipment financing solutions designed to empower middle-market companies to thrive under changing economic pressures. Our sale-leaseback solutions ensure you can efficiently monetize your existing equipment assets while maintaining the operational independence to achieve your long-term objectives. We work closely with our clients to craft financing plans that align with their unique needs, from managing immediate cash requirements to financing new opportunities.

Contact us today to learn how a customized sale-leaseback solution can help your business stay competitive and resilient—no matter what economic challenges come your way.