How Sale-Leaseback Financing Helps Healthcare Businesses Unlock Capital Without New Debt

In today’s uncertain economy, healthcare businesses are under increasing pressure to maintain liquidity, invest in innovation, and stay competitive. Whether you operate a diagnostic lab, a dental practice, or a medtech manufacturing company, access to capital is critical — yet often tied up in real estate or equipment.

One strategic way to unlock that capital without taking on new debt?
Sale-Leaseback Financing.

What is Sale-Leaseback Financing?

Un sale-leaseback is a transaction where a business sells an owned asset — typically real estate or equipment — to an investor or financing company and leases it back immediately to continue using it without disruption.

In essence:

• 🏢 You sell the asset

• 💵 You receive capital

• 📄 You lease the asset back and continue operations

It’s a liquidity tool that turns fixed assets into flexible capital — ideal for healthcare providers navigating tight margins or looking to scale.

Why Use Sale-Leaseback Financing?

Healthcare operators often have significant value locked in their buildings, diagnostic machines, surgical equipment, or specialized vehicles. Rather than refinancing or issuing equity, a sale-leaseback can:

✅ Unlock Immediate Cash

Turn unused equity in owned assets into usable funds.

✅ Preserve Business Operations

Keep using the asset as before — patients, production, or logistics are uninterrupted.

✅ Keep Debt Off the Books

Depending on the accounting structure, the lease may be classified as an operating lease, preserving key financial ratios.

✅ Enable Strategic Flexibility

Funds can be reinvested into:

• Opening new locations

• Hiring or training staff

• Upgrading systems and technologies

• Paying down higher-interest debt

Real Healthcare Examples: Sale-Leaseback in Action

📍 Case Study #1: Imaging Center in Ontario

A medical imaging clinic with a high-traffic location wanted to expand and upgrade its equipment. They owned the building outright and didn’t want to dilute equity or take on high-interest debt.

With Finmed Capital’s help, they executed a sale-leaseback on the real estate:

• 💰 Sold for: $3.2 million

• 🧾 Lease term: 10 years (NNN lease)

• 💵 Capital freed: $2.8 million (after fees)

This let them fund the expansion without borrowing or sacrificing ownership control.

📍 Case Study #2: Surgical Equipment Manufacturer in Quebec

Facing seasonal revenue pressure, a manufacturer needed working capital to meet payroll and restock materials. They had $1.1M in equipment purchased over the past 5 years.

Through a sale-leaseback on their sterilization and fabrication machinery:

• 🏗️ Equipment sold: $900,000

• 🔄 Leased back over 36 months

• 🧑‍🔧 Business continued uninterrupted

The transaction gave them liquidity exactly when it was needed, avoiding layoffs or debt restructuring.

What Assets Are Eligible?

Eligible assets for sale-leasebacks typically include:

• 🧱 Real Estate – medical offices, clinics, pharmacies, distribution centers

• 🩻 Equipment – MRI, CT, X-ray, surgical tools, diagnostics

• 🚐 Vehicles – mobile clinics, lab transport vans, ambulances

• 🏭 Specialized Machinery – sterilizers, packaging lines, manufacturing tools

📌 Note: The asset should be fully owned or have significant equity.

What to Know Before Structuring a Deal

A sale-leaseback can be an excellent strategic tool, but here are a few critical points to consider:

• 📊 Valuation: Fair market value determines how much capital you can unlock.

• 📝 Lease Terms: Typical leases range from 5 to 15 years. Understand your fixed obligations.

• 💡 End-of-Term Options: Some agreements include the right to repurchase the asset.

• 🤝 Lessor Experience: Work with partners who understand healthcare operations and compliance requirements.

Is Sale-Leaseback Right for You?

You may want to explore sale-leaseback financing if:

✅ You own valuable equipment or real estate
✅ You need working capital but want to avoid new loans
✅ You’re planning to expand, restructure, or transition the business
✅ You want to improve your balance sheet or financial ratios

How Finmed Capital Can Help

At Finmed Capital, we specialize in creative financing strategies tailored to healthcare and life sciences businesses across Canada and the U.S. Our team connects you with trusted lenders, lessors, and capital providers to structure win-win sale-leaseback agreements.

Whether you’re growing or weathering a downturn, we help you turn fixed assets into flexible capital — on your terms.

📞 Contact us today for a confidential discussion and free asset valuation.
👉 www.finmedcapital.ca | ✉️ finance@finmedcapital.ca