Sale and Leaseback and Direct Lease Sale and Leaseback

In a way it is an indirect form leasing, the owner of an equipment asset sells it to a leasing company (lessor) that leases it to the owner (lessee). A classic example of this type of leasing is the sale and lease hack of deposit vaults by banks. Banks sell the vaults in their custody to a leasing company price substantially higher than the book value and the leasing company in turn offers these lockers on a long-term basis to the bank. The bank sub-leases the lockers to its customers. The lease back arrangement in sale and lease back type of leasing can be in the form of a finance lease or an operating lease.

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