Sale and Leaseback Transactions (SLT)

What is the logic of manufacturing an item, selling it, and then renting it back? That's what a SLT seems to be. SLT's are often- times used for real-estate (i.e. office space, etc.), and this makes some sense to me. It's analgous to me selling my home, but continuing to live here, but paying rent. My initial fund for the sale of the home would be invested in something quite profitable (i.e. mutual funds or other things).

An example that my book gave was in the sale of an aircraft. This example is very confusing, but I don't understand why a company - let's use Leer Jets - would sell their aircrafts that they manufacture only to rent them out again! Why would Leer Jets want to rent jets? I can understand their need of cash.

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Numbers Afficionado
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