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A leaseback is an arrangement in which the company that sells an asset<\/a> can lease back that same asset from the purchaser. With a leaseback\u2014also called a sale-leaseback\u2014the details of the arrangement, such as the lease payments and lease duration, are made immediately after the sale of the asset<\/a>. In a sale-leaseback transaction, the seller of the asset becomes the lessee and the purchaser becomes the lessor.<\/p>\n\n\n\n A sale-leaseback enables a company to sell an asset to raise capital<\/a>, then lets the company lease that asset back from the purchaser. In this way, a company can get both <\/em>the cash and the asset it needs to operate its business.<\/p>\n\n\n\n In sale-leaseback agreements, an asset that is previously owned by the seller is sold to someone else and then leased back to the first owner for a long duration. In this way, a business owner can continue to use a vital asset but ceases to own it.<\/p>\n\n\n\nUnderstanding Leasebacks<\/h2>\n\n\n\n