Off-balance sheet financing

The balance External financing (English off-balance-sheet financing (OBSF) ) is a term for a financial instrument in the financial and accounting , under which a balance neutral financing is to be understood. Assets and debts are mostly outsourced to special purpose vehicles - established for this purpose - that are not included in the scope of consolidation of the reporting company.

The best- known example of such a form of financing is leasing and, in particular, sale-lease-back (sale and re-leasing) , in which both fixed assets and the corresponding liabilities are removed from the balance sheet.