Sale and Lease Back
Sale and lease back leasing is a specific form of the financial leasing. During the sale and lease back leasing, a leasing company purchases the subject of the leasing from its owner and then leases it back to him on the basis of a leasing contract.
It is not a trilateral contractual relation as in case of the standard financial leasing, but only a bilateral contractual relation – the seller (supplier of the subject of the lease) and the lessee are the same entity.
The sale and lease back leasing is mainly used to free up financial resources for other purposes.