Practice Equipment Refinance & Sale and Leaseback
Paid for the equipment?
Put the cash back to work.
A practice that paid cash for a CBCT scanner, an OCT, a theatre suite or a new IT system can sometimes release that money again. A lender buys the equipment and finances it back to the practice, which keeps using it as before.
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- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
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Quick answer
Can a practice release cash from equipment it owns?
Often, yes, through a sale and leaseback or sale and HP back. A lender buys equipment the practice owns and the practice repays over a fixed term while it keeps using it. For dental, veterinary, optical, medical and IT equipment, most lenders only consider recent purchases, often within 90 days or three months of the invoice. Vehicles and other hard assets are refinanced more widely. We search the market for lenders that fit.
The pressure
Cash spent on kit is cash the practice no longer has.
Practices often pay for equipment from reserves because it is quicker, then find the money is needed a few months later for a tax bill, a PII renewal, a new hire or the next opportunity. Refinancing the equipment can put that cash back into the practice without a new loan against property.
It is not available on every piece of kit, and timing matters. Clinical, diagnostic and IT equipment usually has to have been bought recently, and many lenders work only from the original invoice. We tell you early whether it is likely to work, so you don’t lose weeks finding out.
Bought in the last few months
The strongest position. For clinical, diagnostic and IT equipment, many lenders only consider sale and leaseback within a set window of the original invoice, often 90 days or three months, and may then advance up to the full invoice value.
Older clinical and IT equipment
Much harder. A smaller number of lenders will look at soft assets that are a few years old, usually at a lower advance against the value and often only with a homeowner guarantee. Older kit is often better funded another way.
Vehicles and hard assets
Hearses, ambulatory vehicles and similar hard assets are refinanced more widely, including older ones, and kit still on finance can sometimes be refinanced if the new advance clears the balance.
What can be refinanced
What it can cover.
“Simon has been fantastic in supporting my business to secure suitable funding across several deals.”
- 01 Dental equipment Chairs, CBCT, intraoral scanners, imaging and milling units bought recently.
- 02 Veterinary equipment Diagnostics, imaging, theatre and laboratory equipment.
- 03 Optical equipment OCT, retinal imaging and testing equipment.
- 04 Medical and clinical equipment Ultrasound, diagnostic and treatment equipment for clinics and practices.
- 05 IT and practice technology Servers, workstations and hardware. Software and installation can usually make up only a small part.
Lenders usually want identifiable equipment with serial numbers, the original purchase invoice and proof of payment. Some inspect the equipment or ask for a valuation before paying out.
How it’s often structured
Structured around the practice.
There are two main routes. In both, the practice sells equipment it owns outright to a lender and receives the agreed advance, then makes regular payments over a fixed term while continuing to use the equipment as before. Terms commonly run up to five years, and sometimes longer.
The difference is what happens at the end, and how it is treated in the accounts. With a sale and HP back the practice owns the equipment again once the final payment is made. With a sale and leaseback the lender keeps ownership and the practice continues to rent it or agrees an end-of-term option. Either can change how capital allowances are claimed, so speak to your accountant before you sign.
Buying new equipment instead? See equipment finance. Restructuring several existing facilities at once is covered under practice refinance.
- Sale and HP back. Cash now, monthly payments, and the equipment returns to the practice’s ownership at the end.
- Sale and leaseback. Cash now, monthly rentals, and the lender owns the equipment while the practice keeps using it.
How we help
Not one lender. The right one.
Only some lenders refinance soft assets at all, and their rules differ on how recent the purchase must be, how old the equipment can be, how long the practice has traded and whether a homeowner guarantee is needed. We check the invoice dates and the kit first, then approach the lenders whose criteria fit. If the equipment is too old to refinance, we will say so and look at an unsecured practice loan or working capital instead.
- Access to 300+ lendersHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
What lenders will want to see
What lenders will look at.
- The original invoices and proof of payment for each item
- Make, model, serial numbers and the date each item was bought
- Whether any of the equipment is still on finance
- Recent accounts and business bank statements
- What the cash is for and how the payments will be met
- The personal credit history of the directors or partners giving guarantees
Who this is for
- Dental practicesChairs, CBCT and scanners paid for in cash.
- Veterinary practicesDiagnostics, imaging and theatre equipment.
- OpticiansOCT and retinal imaging.
- Private healthcareClinical and diagnostic equipment.
- Funeral directorsHearses, limousines and mortuary equipment.
- Consulting engineersSurvey kit and IT hardware bought recently.
Questions
What firms usually ask.
Can I refinance dental equipment I have already paid for?
Often, yes, if it was bought recently. Many lenders only consider a sale and leaseback or sale and HP back on clinical and diagnostic equipment within a set window of the original invoice, often 90 days or three months. Chairs, CBCT, scanners and imaging bought outright in that window are the strongest cases. Older equipment is harder, and we will tell you early if it is unlikely to work.
What is the difference between sale and leaseback and sale and HP back?
In both, a lender buys equipment the practice owns and the practice receives the cash, then makes regular payments while it keeps using the equipment. With sale and HP back the practice owns the equipment again after the final payment. With sale and leaseback the lender keeps ownership and the practice rents it. See equipment finance for the same structures on new purchases.
How much can a practice raise against its equipment?
It depends on what the equipment is, how old it is and the lender. For recently bought equipment some lenders will advance up to the full invoice value. For older equipment the advance is usually a lower share of its value, if the lender will consider it at all. Software, installation and training usually count for little, because they cannot be resold.
Does sale and leaseback affect capital allowances?
It can. Selling an asset you have claimed allowances on, then leasing or buying it back, can change what the practice can claim and when. GOV.UK explains how capital allowances work, and your accountant should check the position before you go ahead. We arrange the finance; we do not give tax advice.
Can equipment that is still on finance be refinanced?
Sometimes. Some lenders will consider equipment that is already financed if the new advance clears the outstanding balance, mainly for vehicles and other hard assets. If the aim is to bring several existing agreements together, practice refinance may suit better, and we will compare the two.
Knowledge Hub
Read the guides.
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Bought equipment recently?
Talk to us while the invoice is still recent.
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