Extended capital-markets CFO
Furniture, fixtures and equipment may be financing candidates, but FF&E is an accounting label, not a single financeable asset. Separate durable company-owned equipment from consumables, landlord property and items with little remaining use. The question is how much usable liquidity a transaction leaves after costs, while preserving the business operation.
Build a usable schedule
List the asset, location, legal owner, installation date and remaining service period. Group repeat items where sensible, but retain invoice-level support. An office furniture package, restaurant kitchen and medical device should not receive the same useful-life assumption. Reconcile the schedule to the ledger without assuming the ledger establishes market value.
Market reference: SEC: understanding financial statements.
Distinguish fixtures from movable equipment
For installed items, ask who owns them under the property lease and what happens at lease expiry. Check whether removal would damage the premises or interrupt service. Bring counsel into fixture, consent and security questions. A provider that finances equipment and improvements still needs to approve the actual asset package.
Market reference: Mesirow: equipment and tenant improvement financing.
Compare cash released with obligations added
Show proposed gross proceeds, existing obligations to discharge, fees and cash retained. Then compare future payments and end-of-term rights with keeping the assets unfinanced. Include the cost of replacing shorter-lived components before the financing ends. Releasing cash is not an economic gain by itself.
Keep the transaction proportionate
A scattered inventory of low-value items can cost more to document than the funding benefit warrants. A recurring purchase program or a coherent recent fitout may be more practical. Ask for a preliminary eligibility review before paying for appraisals across every location.
Illustrative example, not a client result
The decision in practice
A company has recently furnished several leased offices. The useful starting point is a schedule of retained furniture and equipment, net of items owned by landlords, not the total office project spend. Financing may suit the retained package while consumables and replacement stock stay outside it.
What to prepare
- Asset schedule by location and legal owner
- Invoices, existing finance and remaining useful-life estimates
- Property lease provisions affecting installed assets
For an initial conversation, a summary is enough. Share private materials only through an agreed channel.
Common questions
Does FF&E always include tenant improvements?
No. Accounting categories and lease definitions vary. Identify each item and avoid counting the same asset in both schedules.
Does a fully depreciated asset have no value?
Not necessarily. Accounting value and asset value differ, but continuing use alone does not establish financing proceeds.
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.