Sale and lease back

• Overall


  Refers to the process of selling an owned asset to a lessor and then leasing the asset back through fixed payments over a specific period of time

  Lessor retains ownership

  Biggest advantage is that is improves a business’s liquidity → enables the business to receive a large cash injection from the sale of the asset, which then can be used as working capital if the business is experiencing a cash shortfall → the business still continues to benefit from the use of the asset