Extended capital-markets CFO
Potentially. An asset loan or sale-leaseback may release capital from equipment and improvements your company has already funded. The useful starting point is a defined set of assets, who owns them, and how long you expect to use them. A balance-sheet total alone cannot tell you how much financing is available.
Separate existing assets from new spending
Completed assets and planned purchases involve different questions. For existing assets, establish ownership, current value and existing claims. For new spending, assess funding dates, delivery and acceptance. Equipment and tenant improvements have specialist financing markets, but their terms and eligibility are not interchangeable.
Market reference: Mesirow: equipment and tenant improvement financing.
Build an asset list, not a headline number
Start with one location or equipment group. Reconcile the accounting schedule with invoices and the assets still in service. A broad property, plant and equipment figure may mix land, buildings, construction in progress and fully depreciated equipment. The operating lease right-of-use asset is a different accounting measure, not a second pool of equipment to monetize.
- Separate company-funded work from landlord allowances and grants.
- Identify leased, financed, sold or retired items before estimating proceeds.
- Match each asset group to remaining useful life and occupancy.
Compare what the business actually receives
The decision is net usable liquidity against future payments and restrictions. Deduct existing debt repayment, fees and required reserves from any proposed advance. Then compare a bank loan, specialist lease financing and retaining current funding. Replacing cash with a lease adds an obligation; it does not make the asset free.
When to leave the current funding in place
Do not force a transaction where assets will soon be replaced, lease expiry is close, consent is uncertain or transaction costs absorb the benefit. A provider indication is useful only when its assumptions match the actual asset schedule. Specialist reimbursement products exist, but one provider's advertised terms are not a universal rule.
Market reference: Dolfin: new and completed tenant improvements.
Illustrative example, not a client result
The decision in practice
A company has a $30 million gross equipment-and-improvements balance. Before discussing proceeds, the team separates landlord-funded work, assets already financed and equipment due for replacement. The financeable subset may be materially smaller. This reconciliation is more useful than applying a standard percentage to $30 million.
What to prepare
- Asset schedule with location, original cost and current book value
- Evidence of ownership, funding source and outstanding liens
- Remaining useful life, occupancy term and intended use of liquidity
For an initial conversation, a summary is enough. Share private materials only through an agreed channel.
Common questions
Can assets already paid for qualify?
Yes, some structures address completed assets. Eligibility still depends on ownership, asset condition, credit, existing claims and provider requirements.
Is gross book value the amount we can receive?
No. Gross cost, net book value, market value and financing proceeds are different figures. A transaction needs a supported asset review.
Sources and further reading
Our decision framework is CFO Signals analysis. External references describe market practices and products, not an endorsement, partnership or available offer. Terms and eligibility require confirmation for your transaction.