Definition of sale and leaseback
“Sale and leaseback a way of raising capital by selling an asset to a finance provider and leasing it back. It provides a boost of while allowing you to continue using an asset within your business.”
If your business is asset-rich but cash poor, sale and lease back could be an alternative way of raising some working capital without giving up the use of your business critical assets.
You could sell high-value items such as machinery, vehicles or computer equipment to a third-party finance provider, and then arrange a leasing deal so you can rent the equipment back for a fixed monthly cost.