What is a Sale-Leaseback, and why would i Want One? What Is a Sale-Leaseback, and Why Would I Want One? Once in awhile on this blog, we respond to often asked concerns about our most popular financing alternatives so you can get a better understanding of the many services available to you and the benefits of each. This month, we're concentrating on the sale-leaseback, which is a financing option many companies might have an interest in today considering the existing state of the economy. What Is a Sale-Leaseback? A sale-leaseback is an unique type of equipment financing. In a sale-leaseback, often called a sale-and-leaseback, you can sell a property you own to a leasing company or lending institution and then lease it back from them. This is how sale-leasebacks generally operate in industrial real estate, where business frequently use them to release up capital that's bound in a property financial investment. In property sale-leasebacks, the financing partner generally develops a triple net lease (which is a lease that requires the tenant to pay residential or commercial property costs) for the business that just offered the residential or commercial property. The financing partner ends up being the proprietor and collects rent payments from the former residential or commercial property owner, who is now the tenant. However, equipment sale-leasebacks are more versatile. In a devices sale-leaseback, you can promise the property as collateral and borrow the funds through a $1 buyout lease or equipment financing agreement. Depending upon the type of deal that fits your needs, the resulting lease might be an operating lease or a capital lease Although real estate business often use sale-leasebacks, entrepreneur in numerous other markets may not understand about this financing choice.