A sale and leaseback arrangement transfers ownership from a user to a lessor who then leases the asset back to the former owner.

Question

Quizplus · Accepted Answer

Sale and leaseback is a transaction where the owner of an asset sells it to another party and then immediately leases it back for a specified period of time, usually on the long-term basis. The ownership of the asset is transferred from the user to the lessor who then leases the asset back to the former owner. This arrangement is commonly used to release cash tied up in assets and to reduce the risks associated with asset ownership.

A Sale and Leaseback Arrangement Transfers Ownership from a User