A sale and leaseback agreement
A)is usually an operating lease
B)is rarely used in today's leasing agreements
C)is a method of providing liquidity for the lessee
D)frequently is used for machinery financing, but rarely used in real estate

Question

Quizplus · Accepted Answer

A sale and leaseback agreement is a type of lease in which a company sells an asset to a lessor and then immediately leases the same asset back from the lessor. This allows the company to receive cash for the sale of the asset, while still retaining use of the asset. It is commonly used as a method of providing liquidity for the lessee.

A Sale and Leaseback Agreement