In order to liberate cash, save tax and improve balance sheet, client sells equipment and facilities to leasing company at fair value in exchange for executing a lease and paying rent. On the one hand, leaseback can help the client perk up its cash flow; on the other hand, client continues to be able to use the equipment and facilities. However, equipment and facilities should be legitimately owned by the client before they are sold out to the leasing company. There should be no others who would claim rights over the equipment and facilities.