Please use the search field below to search the Industry Dictionary for a particular word or a group of words, or use the letters below to search for expressions alphabetically. Search:    A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  Your search returned 62 result(s). Call The exercise of a legal right to purchase an item from another at a specified price on a future date. Call Option A legal right to purchase an item from another party at a specified price on a future date. Cancellable Lease A lease which can be cancelled (or terminated) by the lessee before its originally scheduled conclusion. Cap Cost A shorthand reference for capitalized cost. Capital Lease (1) A lease for accounting and financial statement purposes which must be shown on the balance sheet of the lessee as an asset on the asset portion of the balance sheet with a corresponding capital liability on the liability portion of the balance sheet. (2) From a financial reporting perspective, a lease that has many of the characteristics of a purchase agreement, and also meets certain criteria established by the Financial Accounting Standards Board Statement No. 13 (FASB 13). Two typical Capital Lease sub-forms are the Direct Financing Lease, which is the most similar to a bank loan, and the Sales-Type Leases, which, as implied, involves the sale of a product. (3). A FASB accounting classification to be accounted for by a lessee as a purchase and by the lessor as a sales or financing agreement, if it meets any one of the following criteria: (a) The lessor automatically transfers ownership to the lessee at the end of the lease term; (b) the lease contains an option to purchase the asset at a bargain price; (c ) the lease term is equal to 75% or more of the estimated economic life of the property (exceptions apply for used property leased toward the end of its useful life); or (d) the present value of minimum lease rental payments is equal to 90% or more of the fair market value of the leased asset, less related investment tax credits retained by the lessor. Capitalized Cost The total acquisition cost of equipment as purchased by a lessor for lease, including purchase price, Captive A shorthand reference for a captive lessor. Captive Lessor A leasing company that has been set up by a manufacturer or dealer of equipment to finance the sale or lease of its own products to end- users or lessees. Carve Out A partial spin-off of a company Cash Basis A method of accounting that shows expenses only when paid and income only when received. Cash Flow Income receipts and expense payments over a specified period of time Cashier’s Check A check issued by a bank in its own name on behalf of one of its depositor Casual Lessor A lessor who is not in the business of leasing, but who does an occassional lease, primarily for the tax benefits of the lease transaction Casualty (business based) A loss resulting from a calamity/disaster Certificate of Delivery and Acceptance (D&A) A written verification or document that is signed by the lessee to acknowledge that the equipment to be leased has been delivered and is acceptable. Many lease agreements state that the actual lease term commences once the D&A has been signed. The D&A is also commonly referred to as the Certificate of Acknowledgement and Acceptance of Leased Equipment. Certificate of Insurance A statement from an insurance company or its agent that a certain policy has been written. The certificate usually summarizes the policy’s coverage Certified Check A check issued by a depositor to which has been affixed the proper authorization from the bank to guarantee that sufficient funds have been set aside from the depositor’s account to satisfy the check Certified Copy A copy certified by a notary of other official to be a true, complete and accurate copy of the original. CFR (U.S. based) Code of Federal Regulations Chattel Personal property. Chattel Mortgage A transfer of ownership of personal property for the purpose of securing performance of a obligation. Claim and Delivery A judicial procedure used to demand the return of one’s property. Classification (Accounting based). The process or procedural tests employed to determine whether or not and how an asset is to be shown on the balance sheet Clawback (UK bankruptcy based) The requirement that payments by an insolvent business to certain creditors be returned to the insolvent’s estate for appropriate distribution to all qualifying creditors. Clean Letter of Credit A letter of credit without limiting conditions or qualifications. Close (Business based) To finalize a transaction, particularly through a meeting at which all parties to the transaction sign and exchange all necessary documents. Close Corporation A non-public corporation; a privately-held corporation. Closed-End Lease (1). A lease transaction that allows the lessee to "walk away" from the leased property at the end of the lease term with no liability for increases or decreases in the expected residual value of the property. The lessee still remains liable for damage to the property beyond ordinary wear and tear and may or may not have a purchase option. (2). A lease that does not contain a purchase or renewal option, thereby requiring the lessee to return the equipment to the lessor at the end of the initial lease term. (3). A true or operating lease in which the lessor assumes the depreciation risk. This term is also used to distinguish the lease from an open-end lease. Closing Business based) The meeting at which all parties to a transaction sign and exchange all documents necessary to finalize the transaction Closing Costs The transactions costs related to finalizing the transaction Closing Date The date for the meeting at which all parties to a transaction sign and exchange all documents necessary to finalize the transaction Cloud On Title A claim, lien, or other encumbrance, whether valid or not, which impairs the absolute entitlement of an owner of real estate or other property. COD (Cash on delivery) Shipment terms by which the recipient (usually the buyer) must pay the delivery agent the agreed upon price for the goods at the time that the goods are physically handed over to the recipient. Co-Lessee An additional lessee to a lease, who is usually jointly and severally liable on the lease with the other lessee. Collateral Security, usually property, pledged to secure performance of an agreement Commercial Lease A lease in which the lessee has entered into the lease for business purposes; not a consumer lease. Commitment Fee A fee required by the lessor, at the time a proposal or commitment is accepted by the lessee, to lock in a specific lease rate and/or other lease terms. A commitment letter is a document prepared by the lessor that sets forth its commitment, including rate and term, to provide lease financing to the lessee. This document precedes final documentation, and may or may not be subject to other conditions, such as lessor credit approval, guarantors, collateral, etc. Compensating Balance The amount of money a financial institution requires a borrower to maintain in an account with the institution as a condition of receiving credit from the institution Compound Interest Interest computed on the sum of principal and accrued interest as of the date of computation. Computer Leasing and Remarketing Association (U.S. based) Leasing industry association for lessors involved in the leasing of computers and related equipment. Conditional Sale A type of sale in which the seller of goods retains title to the goods until they have been fully paid for. Conditional Sale Agreement A type of security agreement in which the seller of goods retains title to the goods until the goods have been fully paid for. Conditional Sales Contract An agreement for the purchase of an asset in which the lessee is treated as the owner of the asset for federal income tax purposes. This entitles the lessee to the tax benefits of ownership, such as depreciation, but the lessee does not become the legal owner of the asset until all terms and conditions of the agreement have been satisfied Consideration (Business common law based) The inducement to a contract; the value given for a contract. Consideration may be money, property, a promise, a forbearance or any other thing, act, benefit or value. Consumer In most jurisdictions, a buyer/user of goods whose purpose is primarily for personal, family or household purposes. Some jurisdictions include certain agricultural businesses and other small businesses within this definition. Consumer Credit Credit which has as its primary purpose, personal, family or household purposes." Consumer Lease 1. Generally, a lease which has as its primary purpose, personal, family or household purposes. In some geographic locations, certain agricultural leases may be considered consumer leases. Contract The total legal obligation which results from an agreement (i.e. contractual agreement). Corporation A legal entity created by or under the authority of state law which has the capacity to act on its own behalf and which has a continuity of existence without regard to transfers of interests in it. Cost of Capital The weighted-average costs of funds that a firm secures from both debt and equity sources in order to fund its assets. The use of a fim's cost of capital is essential in making accurate capital budgeting and project investment decisions. Cost of Debt The costs incurred by a firm to fund the acquisition of assets through the use of borrowings. A firm's component cost of debt is used in calculating the firm's overall weighted-average cost of capital. Cost of Equity The return on investment required by the equity holders of a firm. A firm's cost of equity is also used in calculating the firm's overall weighted- average cost of capital; many different approaches may be used to calculate the COE, as long as consideration is given to the current and long-term yield requirements of the firm's investors Coterminous Two or more leases that end at the same time. A Coterminous Addendum can be used allowing you to add equipment to an existing lease, adjusting the payments to reflect the addition. Both the original lease and the ddendum will terminate at the same time Counterclaim A claim asserted by a defendant against a plaintiff. Covenant A promise to do something; a representation that certain facts of a given situation are true. Cross Corporate Guaranty A guarantee by one corporation to pay the lease obligations of another corporation. Cross-Border Double Dip A lease transaction in which the lessor is in one country and the lessee is in another, with one of the parties being in a country that uses a form over substance approach to determine who is the owner for tax purposes and the other party is in a coutnry that uses a substance over form to determine who is the owner for tax purposes. The resulting combination yields two sets of tax benefits, thus, the notion of a double dip. Cross-Border Lease A lease transaction in which the lessor is in one country and the lessee is in another or several others. Cross-Border Transaction A transaction in which the parties are in two or more countries. Current Assets Assets that are readily converted into cash (i.e. liquid or near liquid). Current Liabilities Liabilities that must be satisfied or covered within a maximum duration of one year. Current Ratio (Financial ratio analysis based) The ratio of current assets to current liabilities About Us | Services Offered | Financing Available | Equipment Financed | Financing Advantages | Application Center | PDF Download | Vendor Login | Industry Dictionary | Career Opportunities | Information Request | FAQs | Partner Alliance Program | Site Map | Home