Leaseback: meaning, definitions and examples
๐ข
leaseback
[ liหs.bรฆk ]
financial transaction
Leaseback is a financial transaction in which one sells an asset and leases it back from the buyer. This arrangement allows the seller to remain in possession of the asset while freeing up capital for other uses. It is commonly used in real estate, where property owners can sell their property to gain liquidity. Leasebacks can also provide tax advantages, as lease payments may be deducted as business expenses. This arrangement is often utilized by businesses to leverage their capital and improve cash flow.
Synonyms
sale-leaseback, sell-and-leaseback
Examples of usage
- The company engaged in a leaseback of its headquarters to optimize cash flow.
- Investors often seek leaseback agreements to ensure steady income.
- The leaseback allowed the firm to reinvest the proceeds in growth opportunities.
Translations
Translations of the word "leaseback" in other languages:
๐ต๐น leaseback
๐ฎ๐ณ เคฒเฅเคเคฌเฅเค
๐ฉ๐ช Sale-and-Leaseback
๐ฎ๐ฉ leaseback
๐บ๐ฆ ะปัะทะฑะตะบ
๐ต๐ฑ leaseback
๐ฏ๐ต ใชใผในใใใฏ
๐ซ๐ท leasing-bail
๐ช๐ธ arrendamiento retroactivo
๐น๐ท geri kiralama
๐ฐ๐ท ๋ฆฌ์ค๋ฅผ ํตํ ๋งค๊ฐ
๐ธ๐ฆ ุฅุนุงุฏุฉ ุงูุฅูุฌุงุฑ
๐จ๐ฟ zpฤtnรฝ leasing
๐ธ๐ฐ spรคtnรฝ leasing
๐จ๐ณ ๅ็ง
๐ธ๐ฎ povratno najemanje
๐ฎ๐ธ afturleiga
๐ฐ๐ฟ าะฐะนัะฐััะผะดัา ะถะฐะปาะฐ ะฑะตัั
๐ฌ๐ช แแแแแฎแแแก แกแแกแฎแ
๐ฆ๐ฟ geri icarษ
๐ฒ๐ฝ arrendamiento retroactivo
Etymology
The term 'leaseback' is derived from the combination of 'lease' and 'back,' indicating the return of the asset to the original owner after the sale. The concept emerged in the mid-20th century as businesses sought innovative methods to manage their finances. The leaseback arrangement became particularly popular in real estate transactions, especially during the economic shifts of the 1980s. As companies faced challenges in accessing capital, leasebacks provided a solution, allowing them to liquidate assets while retaining operational control. Over time, the practice has evolved, and today it encompasses a wide range of assets beyond real estate, including machinery, vehicles, and equipment. This financial strategy is often employed by corporations aiming to balance their asset management with cash flow needs.