Sale & Lease Back
Sales and Lease Back is a method of financing where assets are sold to the lender, which then concurrently enters into a lease agreement with the customer. The customer remains in possession of the asset for the specified term of the lease and pays a monthly rental. This enables the customer to use the sale proceeds more effectively.
- Similar benefits to leasing.
- Recoupment of capital cost outlaid from cash reserves to purchase the asset.