Sale & leaseback: how to turn your assets into cash flow without interrupting your business

For many Swiss SMEs, the cash flow problem does not come from a lack of assets — it comes from assets stuck in the balance sheet. Industrial machinery, commercial vehicles, medical equipment: you own them, you use them every day, but their value remains locked away. Sale and leaseback is the solution that allows you to unlock this value in a matter of weeks, without a traditional bank loan, and without any business interruption. Here is how this mechanism works, why it is particularly well-suited to the Swiss context, and how Ecofina SA supports SMEs in French-speaking Switzerland through this process.

What is sale and leaseback? Definition and mechanism

Sale and leaseback is a two-stage financial transaction:

1. You are selling your assets (equipment, machinery, vehicles) to a partner financial institution.
2. You are taking them back on rental immediately (leasing), over an agreed period — usually 36 to 60 months.

Result: you continue to use your equipment exactly as before, but you have recovered its value in immediate cash. The asset leaves your balance sheet, the monthly rent enters your operating account.

This mechanism is legally straightforward and strictly regulated for tax purposes in Switzerland. It requires no operational downtime, no relocation of equipment, and no renegotiation of supplier contracts.

Difference between sale and leaseback and traditional credit

Criteria	Traditional bank loan	Sale and leaseback
Registration on the balance sheet	Visible financial debt	Asset derecognition, off-balance sheet lease*
Required guarantees	Mortgage, guarantee, pledge	The asset itself
Impact on debt-to-equity ratio	Negative (debt increases)	Neutral or positive
Implementation timeframe	4 to 8 weeks	2 to 4 weeks
Access if balance sheet is tight	Difficult	More accessible

*According to the SWISS GAAP FER standards applicable to the majority of Swiss SMEs.

Tax benefits in Switzerland (deductibility, balance sheet, ratios)

The Swiss tax framework is particularly favourable to sale and leaseback for SMEs:

Full deductibility of rent. Rents paid under an operational lease are fully deductible as operating expenses, unlike depreciation on owned assets, which may be subject to capping rules.

Balance sheet de-leveraging. The removal of the asset from the balance sheet mechanically reduces the balance sheet total, which improves financial ratios (ROA, financial leverage) without altering operating profit.

No capital gains tax in the event of a sale at book value. If the sale takes place at the net book value shown in your ledgers, no taxable capital gain is generated.

Consult your fiduciary for an analysis tailored to your cantonal tax situation.

Which assets are eligible?

The sale and leaseback relates to identifiable physical assets in good working order:

Industry & manufacturing: Machine tools, presses, machining centres, packaging lines, industrial furnaces, compressors, generators.

Health & medical: Imaging equipment (CT scanner, MRI, digital radiography), dental units, dermatological lasers, sterilisers, laboratory apparatus.

Civil engineering & public works: Earthmoving machinery, cranes, excavators, access platforms, compactors, forklift trucks, commercial vehicles and heavy goods vehicles.

IT & audiovisual: Datacenter servers and infrastructure, audiovisual production equipment, security systems.

Catering & hospitality: Commercial kitchen equipment, industrial refrigeration systems.

The minimum value per file is generally CHF 50,000. There is no theoretical ceiling for well-documented assets.

The 4 stages of the Ecofina process

Step 1 — Funding eligibility assessment (48h): We analyse your assets, your balance sheet and your cash flow requirements. You receive an initial estimate of the recoverable amount.

Step 2 — Portfolio and asset assessment (1 week): Our experts evaluate the assets in conjunction with our Swiss financial partners. No evaluation fees at this stage.

Step 3 — Funding proposal (3 to 5 days): You receive a detailed proposal: amount, monthly rent, term, and end-of-contract purchase options.

Step 4 — Setup and disbursement (within 2 weeks): Signing of the documents, legal transfer of the asset and transfer of the funds to your account. The equipment remains in place on your premises.

Quantified example: an industrial SME in Lausanne

Fictional case for illustrative purposes.

The situation: Mechanical manufacturing company in Lausanne with 28 employees. Order book is full, but cash flow is tight due to a long customer payment period (60 days). The manager wants to avoid taking out another bank loan, which would worsen the debt-to-equity ratio.

Assets: Three CNC machining centres acquired 3 years ago, net book value: CHF 300,000.

The Ecofina solution: Purchase of the three machines for CHF 285,000 (95 per cent of the book value). Operating lease agreement over 48 months. Monthly lease payment: CHF 6,200. Funds available immediately: CHF 285,000.

The benefits: Cash flow restored in 10 days. Annual tax saving on rent: approximately CHF 6,000. Debt-to-equity ratio unchanged. No production downtime. Option to buy back the machinery for CHF 1 at the end of the contract.

FAQ — Sale & Leaseback for Swiss SMEs

Can I do a sale and leaseback if my machinery is already on lease?
No, sale and leaseback requires you to own the asset (registered on your balance sheet, with no current charges). If the asset is already financed, the existing financing must first be settled.

What is the minimum and maximum duration of a contract?
In Switzerland, sale and leaseback agreements generally last from 24 to 72 months depending on the nature and lifespan of the asset. Ecofina offers terms tailored to each sector.

Is there a risk of losing my equipment if I can no longer pay?
Yes, like any lease, non-payment of rentals can lead to the repossession of the equipment. That is why Ecofina carefully analyses the affordability of the rental in relation to your turnover before structuring the transaction.

Is sale and leaseback suitable if my company is in difficulty?
It depends on the degree of difficulty. If your business is viable but temporarily experiencing cash flow strain, sale and leaseback can be an effective solution. Contact us for a no-obligation assessment.

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Sale and leaseback is one of the most powerful and least used solutions by Swiss SMEs. It makes it possible to leverage dormant assets to finance growth, secure cash flow or get through a tight period — without going through a bank, without increasing liabilities, and without interrupting business operations.

Ecofina SA has been supporting SMEs in French-speaking Switzerland with this process for over 20 years.

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