Transaction
Leasing facility for leasehold improvements and equipment of a new retail opening.
Published financing features
- Lease with $1 buyback
- Amortized over 8 years
- Minimal personal guarantee
Published client benefits
- Pays trades and suppliers directly
- Preferred tax treatment
- Reduced personal guarantees
- Swift loan processing
- Extended amortization
How this kind of financing works
Fitting out a new location is difficult to finance conventionally because most of the spend does not create a resaleable asset. Leasehold improvements — millwork, ventilation, plumbing, flooring — largely stay with the premises, and a business opening a location has no operating history at that address to lend against.
A lease facility structures the fit-out and equipment as a leasing transaction rather than a loan. Payments are made over the term and the assets are acquired at the end, commonly for a nominal buyout of one dollar. That structure carries a different tax treatment from a term loan, which is worth confirming with an accountant before choosing between them.
Two features are worth asking for specifically. Paying trades and suppliers directly keeps the construction schedule moving and removes the owner from the middle of the payment chain. Amortisation matched to the life of the improvements keeps early payments serviceable while a new location is still building revenue — the period when cash is tightest and a mismatched term does the most damage.
Historical example only. It is not a promise of terms, availability, or results for a future transaction.
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