A ﬁnancial lease in which the lessee sells an asset to the lessor and then leases it back is called a(n) ______________.

Question

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A Sale and leaseback is a type of financial lease in which the lessee sells an asset to the lessor and then leases it back. The lessor becomes the owner of the asset, and the lessee gets to use the asset while making lease payments. This type of lease is often used by companies to raise funds by selling their assets and then leasing them back.

A ﬁNancial Lease in Which the Lessee Sells an Asset