Leaseback

What Is a Leaseback?

A leaseback (also called a sale-leaseback or a sale-leaseback transaction) is a legal arrangement in which the previous owner of an asset leases it back from the current owner. Under this transaction, the previous owner can continue to use the asset without having ownership.

A leaseback example is a builder who needs to raise capital to purchase expensive equipment but needs to retain the asset in order to operate its business.