GPU Sale-Leaseback: Unlock Capital Without Losing Capacity
What is a GPU sale-leaseback?
A sale-leaseback allows GPU owners to sell their hardware to a financing company and immediately lease it back, converting fixed assets into working capital while maintaining operational control. This is a non-dilutive way to fund growth using existing AI infrastructure.
Key Data Points
- Advance Rate: 60-70% of Fair Market Value (FMV)
- Implicit Rate: 12-18% (Based on credit/age)
- Typical Lease Term: 36-60 months
- Minimum Deal Size: $5M+
- Purchase Options: $1 buyout or 10% FMV
How Sale-Leaseback Works
Appraisal
GPUs valued at current market price minus depreciation curve
Sale
Financing company purchases hardware at 60-70% of appraised value
Leaseback
Immediate leaseback with monthly payments over 3-5 years
Options
Purchase option, renewal, or return at lease end
Typical Economics
| Term | Typical Range | Notes |
|---|---|---|
| Advance Rate | 60-70% of FMV | Higher for newer hardware |
| Implicit Rate | 12-18% | Based on credit quality and hardware age |
| Lease Term | 36-60 months | Shorter terms for older hardware |
| Purchase Option | $1 buyout or 10% FMV | Depends on lease classification |
| Minimum Deal Size | $5M+ | Some lenders go lower for strategic accounts |
Advantages & Considerations
Advantages
- •Non-dilutive capital (no equity given up)
- •Maintain full operational control of hardware
- •Potential tax advantages (lease payments deductible)
- •Off-balance-sheet treatment possible (operating lease)
- •Faster execution than equity fundraising
Considerations
- •Higher all-in cost than senior debt
- •Depreciation risk transferred to you via residual guarantee
- •Early termination penalties can be significant
- •Due diligence on hardware condition required
- •Covenants may restrict hardware relocation
Example Transaction
100x H100 SXM Sale-Leaseback
Net cost of capital: $565,600 over 4 years. Effective annual cost: ~7.8% of cash received. Compare to equity dilution or senior debt rates.
Frequently Asked Questions
Who are the major GPU sale-leaseback providers?
Specialized lenders include Macquarie Equipment Finance, Mitsubishi HC Capital, and boutique GPU-focused funds. Traditional equipment finance companies like SMBC and CIT are also active. Selection depends on deal size and credit profile.
How is the GPU valued in a sale-leaseback?
Valuation uses a combination of: (1) original purchase price, (2) age/depreciation using entropic decay curves, (3) current secondary market transactions, and (4) forward-looking residual estimates. Newer H100s command higher advance rates than A100s.
Can I do a sale-leaseback on leased GPUs?
Not directly. You must own the hardware outright. However, you can sometimes negotiate a buyout of an existing lease and immediately execute a sale-leaseback with better terms, effectively refinancing.
What happens if GPU prices crash during the lease?
Most sale-leasebacks include a residual value guarantee. If prices drop significantly, you may owe a deficiency payment at lease end. This is the key risk—you're betting that revenue from the GPUs exceeds total lease payments.
Model Your Sale-Leaseback
Use our DSCR calculator to see how lease payments impact your debt service coverage.
Open DSCR Calculator →AI Infrastructure Financing Guides
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