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hello and welcome to this session this is professor farhat in which we will discuss sales lease back agreement in my opinion the best way to learn sales lease back is to learn the purpose of the sales lease back agreement so what is the purpose the purpose is to raise money is to raise capital is to bring money to the company because we need money to operate well there are some ways that you can raise money some common ways and thats issuing stocks or borrowing money through that those are the traditional method that company uses or a company can sell an asset or assets that they dont need or if they need the asset they can mortgage the assets thats thats why they keep it but they mortgage the asset how about we have a sales lease back agreement what is a sales lease back agreement its where the company sells their assets then they lease it back because they need to operate a case in point is united airline united airline sold 22 planes then lease those 22 planes back from the ban
