2 min read
Definition
Sale and leaseback is a transaction in which a business sells an asset (often property or plant) to a finance provider and immediately leases it back, releasing the capital tied up in it while retaining operational use.
In plain terms
It unlocks cash frozen in an asset you want to keep using — swapping ownership for a rental commitment and a lump sum today.
Why it matters for your company
It can fund growth or refinance expensive debt using value you already own, but you give up the asset and future appreciation. Weigh the released cash against the lease cost, and compare with a straightforward business loan.
Related reading
Finance lease
A finance lease transfers the risks and rewards of ownership to you — you use the asset for most of its life…
Read →
Refinancing
Refinancing is replacing one or more existing debts with a new facility — usually to lower the cost, extend…
Read →
Business equity release
Business equity release raises cash against the value locked in your assets — usually commercial property —…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.