It means that the owner first signs a sales contract with the leasing company and sells the property to the leasing company for cash. Then, the original owner of the object, as the lessee, signed a leaseback contract with the leasing company to lease the object back. The lessee regains the ownership of the goods after paying all the rent and the residual value of the goods according to the leaseback contract.

The definition of a financial lease contract in the Contract Law is that the lessor purchases the lease item from the seller according to the lessee's choice of the seller and the lease item, and provides it to the lessee for use, and the lessee pays the rent. Sale and leaseback is a special financial lease.

2. Real cases

In the process of production experience, we need financing, such as financing 654.38+0 million to buy raw materials, but we can't borrow money from banks. What are we doing? We are also looking for a financial leasing company. With the company's production equipment as collateral, I got a loan from the financial leasing company. At this time, the equipment is still used by me, but the ownership is transferred, and I still return the principal and interest in the form of rent. This is the so-called "financing sale and leaseback".

Extended data:

Controversy over the mode of financing sale and leaseback.

The typical financial leasing mode is direct leasing, in which there are three parties, namely the seller, the lessor (the buyer) and the lessee. However, when the seller and lessee of financial leasing are the same, there will be a situation of sale and leaseback. Sale and leaseback refers to the transaction mode in which the lessee transfers the ownership of his own property to the lessor and rents it back from the lessor to achieve his financing purpose.

Sale and leaseback is an "atypical" form of financial leasing for both sellers and lessees. However, in the practice of financial leasing in China, the sale and leaseback business accounts for a considerable proportion. For some leasing companies, the leaseback business even accounts for more than 80%.

Sale and leaseback contracts are mortgage loans in nature, but they do not constitute financing lease contracts. On this premise, such contracts are deemed invalid. This will bring great legal risks to the effectiveness of a large number of sale and leaseback contracts and the recovery of rent claims in the financial leasing industry.

In the sale and leaseback transaction, the ownership of the leased property originally belongs to the lessee, and the seller and the lessee are integrated, which is different from the three parties in the traditional financial leasing transaction and is similar to the mortgage loan in form. The uniqueness of mortgage and leaseback is that there are two parties, and the existence of property provides effective guarantee for creditors.

Financing sale and leaseback is relatively rare in our laws, because this concept has only appeared in recent years. Undeniably, financing sale and leaseback has certain advantages, but there are certain risks behind every new thing, so we must be cautious when engaging in this business or signing contracts of similar nature.

Baidu Encyclopedia-Financial Leasing-Business Classification