Sale-leaseback

On 11.04.09, In Leasing Terms, by Celso

A sale-leaseback is a lease where a business (lessee borrows money against equipment they already own or just recently purchased from a funding source (lessor). The business sells the equipment to a lessor and buys it back over the term of a lease by making payments. This is common when a company has to move fast on some equipment at an auction or from a private party sale. The company will buy the equipment and then contact a leasing company lease/finance the equipment they just bought to get their cash back. Funding sources are pick about sale-leasebacks. Some funding sources will not touch them while others will if they make sense.