Definition for: Leaseback
A "leaseback" is a business transaction whereby an asset is simultaneously sold and leased back to the seller for usually long-term continued use. This is also referred to as a "sale and leaseback" or a "sale-leaseback." Such transactions are usually undertaken when the seller desires to unlock the value of the asset and raise money, but still needs the asset for operation of its business. The lessor/buyer undertakes the transaction to receive a financial return on its investment through periodic payments on its lease to the seller. In properly structured leasebacks, the seller can also receive a tax deduction for the periodic lease payments made.
