A business arrangement whereby property is simultaneously sold and leased back to the seller for usually long-term continued use.
A transaction in which one person or business sells property to another person or business. The seller agrees to lease the property back from the buyer for a fixed period of time at a set cost. The advantage for the seller is that a leaseback provides cash from the sale while retaining the beneficial use of the property. The purchaser acquires an asset, as well as a guaranteed income stream. Leasebacks may be used on the sale of airplanes, motor vehicles, and other valuable long-term assets.