Lease – Back

Lease – Back – This is a term explaining an arrangement in which a particular company sells a part of its equipment, land or even building on the condition that the buyer will lease the same back to the seller for an agreed sum of money which will be called the rental and will be carried for a fixed time period.

Ads by Google

In this kind of an arrangement all rules are specified as soon as the sale agreement is made like the amount of money to be paid and the time period for which the lease has been given. In this, the seller is called the “lessee” and the buyer is called the “lessor”.

The Lease – Back arrangement helps the lessee in tax saving and also is a good option in case a company needs to unlock the cash that is already invested into other investments. This arrangement is beneficial for the “lessor or the purchaser who gets a stable income for a fixed amount of time.

Edited and Updated 08th March 2014

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress