What type of transaction involves the sale of an asset and the subsequent leasing back of the same asset?

The transaction that involves selling an asset and subsequently leasing it back is known as a sale and leaseback transaction. In this arrangement, the seller of the asset sells it to a buyer and then leases it back for a specified period. This structure allows the seller to generate immediate cash from the sale while still retaining the use of the asset, which is essential for its operations.

This type of transaction is often beneficial for companies that need liquidity but do not wish to give up the use of valuable assets, such as equipment or property. The seller can continue to use the asset as if they still own it, while the buyer receives a return on investment through the lease payments.

Other transaction types mentioned do not accurately describe this scenario. A purchase and leaseback transaction implies that an entity buys an asset and then leases it, which does not fit the sale and leaseback model. A loan and lease transaction involves borrowing, typically using an asset as collateral without an outright sale. A transfer and lease transaction could imply transferring ownership or a general transfer of rights without the specific structure of selling and leasing back the same asset. Thus, the accurate terminology for this specific transaction structure is the sale and leaseback transaction.