Sale and leaseback enables you to release capital in the business assets that you already own. This simple method of asset based financing involves you selling an asset to a leasing company and then leasing it straight back from them.
Your asset might be a vehicle, some machinery or a piece of equipment, and the amount you sell at is generally the lesser of the market value or the book written down value. As long as the asset retains a recognised value, irrespective of its age, then sale and lease back could be an option for you.
As well as providing your business with an immediate cash boost, sale and leaseback also takes away the responsibility and risks of owning the asset. The lessor now owns the asset rather than you, you just rent it and return it at the end of the lease period, when it might be either re-leased or sold.