Definition

A business deal where a person or company sells a property and then immediately rents it back from the buyer, allowing them to keep using the property while receiving cash from the sale.

Example

The company decided to enter into a leaseback agreement to free up capital for new investments.

Conversation

Have you heard about the concept of leaseback in real estate?

Yeah, it’s when you sell a property and then rent it back, right?

Exactly! I think it's a smart way to free up cash while still using the property.

For sure, it can really help businesses manage their finances better.

Synonyms & Antonyms

Root Explanation

Leaseback is formed from "lease" (from Old French *laisser*, meaning to let or allow) and "back" (meaning in return or again). The term refers to a financial arrangement where an asset is sold and then leased back by the seller, allowing them to continue using it while freeing up capital.

Memory Tip

Think of 'leasing' something, which means allowing its use, and 'back' indicating a return to the original owner. This helps you remember that leaseback is about selling an asset and then leasing it back.

Visually Confused Words