noun
- financial arrangements in which a company sells an asset to another party and then leases it back from the buyer
Usage: business; finance
Examples
- The company used leasebacks to free up capital while maintaining use of their equipment.
- Real estate leasebacks allowed the retailer to sell their stores but continue operating from them.
- The airline arranged leasebacks for several aircraft to improve their cash flow.
- Many corporations use leasebacks as a financing strategy to reduce debt.
- The leasebacks provided immediate funds while preserving operational control.
- Equipment leasebacks are common in manufacturing industries.