Leaseback

See: Lease.

You own a factory making specialty adult diapers (they reveal the logos of sports teams when they get wet). You’d like to score some quick cash to finance expansion. You have a line of diapers dedicated to professional lacrosse teams that you want to launch.

Your main asset is your factory and the land it's built on. You wouldn't mind selling the property to raise the cash, but you don’t really want to move. Time for a sale-and-leaseback transaction, or leaseback for short.

It works like this:

You sell your factory to someone for $25 million. At the same time, you sign a lease with the buyer, agreeing to pay rent of $1 million a year. You get an injection of cash (the $25 million purchase price). The buyer gets a property with a built-in tenant.