How Canadian SMEs Are Using Sale-Leasebacks to Free Up Capital in 2025
In 2025’s capital-constrained environment, small and mid-sized Canadian businesses are facing an uphill battle: interest rates remain above pre-pandemic levels, banks are tightening lending, and inflation continues to pressure cash flow. Yet, amid these challenges, a strategic financing tool is quietly helping SMEs unlock working capital— sale-leasebacks . This article explores how Canadian businesses are using sale-leasebacks to scale operations, improve liquidity, and avoid traditional loan hurdles. What Is a Sale-Leaseback? A sale-leaseback allows a business to sell its owned equipment—such as trucks, excavators, or machinery—to a leasing company and then lease it back immediately. The business receives immediate cash while retaining full use of the asset through a lease agreement. It’s a win-win for capital-intensive sectors like construction, transport, and agriculture. Why Sale-Leasebacks Are Booming in 2025 With major banks scaling back SME lending and bus...