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 97 result(s). F/K/A Acronym for formerly known as; a reference to a prior name. Face Amount/Value The amount as written; the term is typically used in connection with an instrument or security that trades at a price different from the face amount. Facility (Credit based) An extension of credit; the term is typically used in connection with a revolving financing structure of some relative complexity. Factor To provide a loan secured by the accounts receivable of a business. Factoring The financing business of providing loans secured by the accounts receivable of the borrowing businesses. Facts and Circumstances Depreciation (Accounting based) Depreciation that is not, according to a standard schedule and typically unique to an asset or class of assets, based upon the relevant and material situation existing at the time such depreciation is determined. Fair Market Rent The rent that would result from the negotiations between a lessor and a lessee, neither of whom are compelled to lease. Fair Market Rental Value The rental payment amount of an item that would result in the rental of the item by a lessor to a lessee, neither of whom are compelled to lease. Fair Market Value (1) The price of an item that would result in the sale of the item by a seller under no compulsion to sell to a buyer under no compulsion to buy. (2) The value of a piece of equipment if the equipment were to be sold in a transaction determined at arm's length, between willing buyer and a willing seller, for equivalent property and under similar terms and conditions. Simply stated, the actual market value of the leased asset. Fair Market Value Purchase Option An option given by the lessor to the lessee to purchase the leased equipment at the fair market value of the equipment as determined at the time of the exercise of the purchase option. The option is usually exercisable at the conclusion of the lease term. If the lessee chooses to exercise the fair market value purchase option at lease term end, the lessor does not have the ability to retain title to the equipment on a forward basis Fair Market Value Renewal Option An option given by the lessor to the lessee to renew the lease at the fair market rental value of the equipment as determined at the time of the exercise of the purchase option. The option is usually exercisable at the conclusion of the lease term. Fair Rental An abbreviated reference to fair market rental value Fair Value An abbreviated reference to fair market value FASB 13 (U.S. government accounting based) Statement of Financial Accounting Standards No. 13 issued by the Financial Accounting Standards Board, which sets forth the generally accepted accounting principles for lessor and lessee accounting and financial statement reporting. FASB 13 Statement issued by the Financial Accounting Standards Board establishing financial accounting standards for lessees and lessors. FDIC (U.S. based) Acronym for the Federal Deposit Insurance Corporation, the insurance fund for the U.S. banking industry. Federal Consumer Leasing Act (U.S. based) The federal transaction leasing law that applies to all leases where the leased items are to be used primarily for personal, family or household purposes Federal Deposit Insurance Corporation The insurance fund for the U.S. banking industry Federal Leasing Leasing in which the lessee is an agency of the U.S. government. Numerous special rules and considerations are typically applicable with any type of federal leasing. Federal Register (U.S. based) The document that provides legally effective notice of federal government activities. Federal Reserve Banks (U.S. based) Collectively, the central bank of the U.S., organized as a group of regionally located banks. Federal Reserve Board (U.S. based) The board of directors of the Federal Reserve System. Federal Tort Claims Act (U.S. based) The federal law that provides the procedures for bringing certain types of claims, such as those based "on negligence, against the U.S. government. Fee A monetary charge for a service performed. Fee Income Income to a lessor or other financier generated by services not directly involving the advance of funds (i.e. fees from documentation, credit searches, equipment dispositions and the like). Fictitious Person A legally recognized entity that is not an individual human. Corporations and partnerships are often categorized or deliberately established as fictitious persons. Many countries use the term legal person to mean the same thing Fidelity Bond A bond that provides insurance against theft, embezzlement and other larcenous or dishonest conduct by an employee or agent entrusted with the handling of money, instruments, securities, art or other such valuables Fidelity Insurance A bond that provides insurance against theft, embezzlement and other larcenous/dishonest conduct by an employee and/or agent entrusted with the handling of money, instruments, securities, art or other such valuables. Fiduciary A trustee FIFO Accounting An acronym for the first in - first out inventory accounting methodology Finance and Industrial Loan Companies Non-bank financial institutions focused upon the business community as opposed to anything related to the consumer community. Finance Companies Act The government act in most countries that typically regulates non-bank financial institutions. Finance Company A non-bank financial institution authorized to engage in the business of finance. Finance Lease 1. (Accounting based) A lease that must be recorded on the balance sheet; a capital lease; a lease that is not an operating lease. 2. (Legal based) A lease in which the lessor finances the use of the asset and may or may not be financing the ownership of the asset; a finance lease may or may not be a true lease for legal purposes, depending on whether or not one is in a jurisdiction that applies an economic substance test to determine the character of the transaction (i.e. many jurisdictions have a specific definition of a finance lease in their laws; some may have several definitions in various laws which are not consistent). The commonalties in the various definitions often include the fact that the transaction involves three parties (lessor, lessee, supplier), that the lessee has chosen the equipment and the supplier, and that the lease is for a longer term than that which is customary in a traditional rental. Some may specify that the lease is full-payout or that the lessor is not providing maintenance or service of the equipment. The term is casually used, much abused and inexact. Nevertheless, in all instance, regardless of the specific characteristics delineated, the focus in upon the use of the lease structure in service of a financial purpose that is not to say that it is a loan or its equivalent. It is, in most instances, a unique type of financing instrument of recent development. 3. (Tax based) Some tax laws, rules and regulations provide definitions of a finance lease for tax purposes; there is no independent tax definition of finance lease. Finance/Financing The business of advancing funds and obtaining their return with a profit Financial Accounting Accounting as utilized for financial statement and tax reporting purposes. Financial Accounting Standards Board The group that is officially chartered by the government to establish acceptable accounting standards within the U.S. Financial Accounting Standards Board (FASB The accounting standards and rule setting organization within the U.S. that establishes financial reporting guidelines. Financial Agreement An agreement for the advance of funds and their repayment. Financial Calculator A calculator specifically designed and optimized for doing financially-oriented calculations such as present value, "internal rate of return, amortization and similar such computations; the best known in the leasing industry are the Hewlett-Packard 12C and 17B family of pocket calculating machines. Financial Institution A bank or regulated non-bank financial institution (i.e. finance house, merchant bank, leasing company, etc.) Financial Institution Lessor A lessor that is a department, division, subsidiary or affiliate of a regulated financial institution. Financial Lease A lease that has financing as its primary purpose (i.e. a finance lease). Financial Statements Accounting statements that provide specific information about a company's financial position. Financial statements typically include the Profit & Loss Statement (Income Statement), the Balance Sheet and the Statement of Cash Flows. Financial statements are typically audited by either an outside independent CPA firm or internally by accounting professionals or company management. Internally audited financial statements are deemed “un-audited” to the all parties external to the company. Financing Agreement An enforceable contractual agreement for the advance of funds and their repayment between two entities Financing Statement (U.S. based) The document filed with the appropriate government agency for the purpose of perfecting a security interest in goods under Article 9 of the Uniform Commercial Code (UCC) (i.e. the most common form of financing statement is a UCC-1, which covers most types of commercial equipment). Financing Statement (UCC-1 A standardized form recorded with the Secretary of State and/or County Clerk to perfect a lien under the Uniform Commercial Code by notification to all interested parties. Used with some financing leases to protect lessor's interest in the equipment. Financing/Financial Service The advancement of funds with the expectation of repayment at a profit (i.e. the financing business). Finansieringsselskapenes Forening Norwegian. the Association of Norwegian Finance Houses. Finder A party who simply introduces the prospective transaction parties to one another without providing any significant additional services in connection with the transaction. Finder’s typically earn a “Finder’s Fee for their brief, but important service Firm Price A price that is not subject to negotiation First Amendment Lease (U.S. based) A lease with a provision that requires the lessee to either purchase the leased equipment or renew the leased equipment at the end of a specified term. Return of the leased equipment is not an option at this point, but may be at some later time period. Due to its nature, use of this type of provision may qualify the lease as an operating lease for accounting purposes without increasing the residual value risk for the lessor (i.e. this lease structure is referred to as a “stretch lease” in Canada). First and Last A leasing industry reference to a lease transaction in which the lessor receives the first and last lease payment at the inception of the lease. First Deed of Trust The deed of trust that provides the most superior rights and interests due to the fact that it was recorded prior to any other deed of trust, mortgage or other contractual encumbrance First Lien A lien that provides the most superior rights and interests due to the fact that it was recorded prior to the recording of any other respective lien on the property. First Mortgage A mortgage that provides the most superior rights and interests due to the fact that it was recorded prior to any other deed of trust, mortgage or other contractual encumbrance. First Position The situation of a mortgage, lien, security interest or other contractual encumbrance against property being the first such interest in the property to be recorded. First position typically provides the most superior rights and interests First Position Security Interest The security interest that typically provides the most superior rights and interests due to the fact that it was recorded prior to any other security interest or other contractual encumbrance against the property. Fiscal Period A calendar segment of time typically used for budgeting or financial reporting purposes (i.e. monthly, quarterly, semiannually, annually, etc.). Fiscal Policy A government's budgeting and spending plans and decisions, particularly those designed to further particular macroeconomic and socioeconomic goals and initiatives. Fiscal Year A 365-day period, typically not commencing January 1 and ending December 31 of any given year; the terminology is typically used for budgeting, financial reporting and/or tax purposes. Fitness For a Particular Purpose US law based) A warranty implied in leases and sales of goods under the Uniform Commercial Code that where the seller or lessor, at the time of contracting, has reason to know any particular purpose for which the goods are required, and that the buyer or lessee is relying on the seller's or lessor's skill or judgment to select or furnish suitable goods, that the goods will be fit for such purposes. Fixed Payment Lease A lease in which the lease payment remains the same or constant throughout the entire lease term. Fixed Price Purchase Option A purchase option granted to a lessee that is exercisable at a specific mutually agreed upon price, in advance of contractual inception (i.e. typically agreed upon just prior to or at the initial inception of the lease). Fixed Purchase Option An abbreviated reference to a fixed price purchase option. Fixture An item of personal or business property that is so related to specific real estate that it becomes inclusively tied to the real estate from a legal perspective and related transactional, financial reporting and/or tax treatment; Once designated a “fixture”, an item is typically perceived as immovable or non separating from the real estate. An items status as a fixture has historically been determined by its degree of attachment to real estate (i.e. the greater the attachment, the more likely it would be considered a fixture. Recent tests simply view the intent of the parties to make it a fixture or not. Fixture Filing (U.S. based) A financing statement recorded in the real estate records to perfect a security interest in that fixture. Flag of Convenience A ship registry known for its ease of administration and official filing (i.e. Liberia, Panama, etc.). Flat Rate Lease A lease that the lease payment remains the same throughout the lease term (i.e. a fixed payment lease). Flip Rent A stream of rental payments that switch from rents paid in arrears to rents paid in advance or the inverse (from advance to arrears) at some interim point in the lease term or from one rental period to another . Float The value from the use of funds represented by the delay that occurs between presentation of a check or similar draft and the payment credit thereby received, to the withdrawal of funds in satisfaction of it. Floating Lien A lien of assets in general, as they exist from time to time; a lien not specific on any particular asset. Floating Payments Lease, loan or other financial payments that may vary from one payment period to another, particularly when they vary according to changes in a specified monetary or interest rate index (i.e. variable payments). Floating Pledge A pledge of assets in general, not specific to a particular asset, and subject to their existence from time to time. Floating Rate Lease/Rent A lease or rent in which the lease and/or rent payments may vary from one payment period to another, particularly when they vary according to changes in a specified monetary or interest rate index (i.e. variable rate lease, variable rent). Floating Rental Rate The rate used to determine the change in rental payments when a lease has variable lease payments; the rate is typically expressed as some fixed sum over a static monetary index amount (i.e. Libor plus 130 basis points, prime plus 100 basis points, etc.). Footnote (Accounting based) An item of material nature not shown within the typical body of a balance sheet, income statement or other financial statement, but typically as an accompanying comment appearing on the bottom are immediately following the financial statements of a business. Under International Accounting Standards and accounting standards that follow the Anglo-Saxon model, capital or finance leases must be shown in the balance sheet, while operating lease can normally be footnoted. Forced Sale A sale at a bargain price occurring as a result of a liquidation, insolvency or other financial/economic duress. Foreclosure the legal process whereby a party with an interest in collateral removes the interests of other parties from the property, including those of the original owner, and is thus, able to sell or otherwise dispose of the property in all or partial satisfaction of the monies or other obligations remaining owed to it. Foreign Corporation A corporation that was not charted by the local jurisdiction; the corporation need not be from another country (i.e. within the U.S., a corporation established in the state of Delaware is classified as a foreign corporation in all other states it does business (i.e. New Jersey, Florida, Virginia, etc.)). Foreign Exchange Any monetary currency that is not of the local legal tender. Foreign Exchange Risk The risk that the future value of a foreign currency or its ability to be converted to another currency will be less than expected or less than its current equivalent worth. For-Ex An abbreviated reference to foreign exchange. For-Ex Risk An abbreviated reference to foreign exchange risk. Forgery A signature that is not the signature of the party it purports to be. Fractionalization Clause A contractual provision in a lease that allows a lessor to divide its interest in the lease and the equipment into percentage units or fractional shares and selling, assigning or otherwise transferring those fractional interests to other parties; a type of lease participation clause that allows a lessor to spread its risk in larger transactions and to increase its funding options and flexibility. Freedom of Contract The ability of parties to a contract to decide upon the terms and conditions of said contract by their own negotiated agreement, and without a law, regulation or rule dictating/controlling the terms or conditions of the contract. Frozen Account An account to which the account holder is denied access, usually because of some legal enforcement action taken against the respective party (business). Frozen Asset An asset that cannot be sold, leased, disposed of or otherwise transferred, typically resulting from some legal enforcement action taken against a respective party (business). Frozen Credits Previously established credit extensions that cannot be used, primary as a result of the fact that the borrower has not honored repayment obligations to that creditor and the creditor has decided to refuse requests for further advances Full Maintenance Lease A lease in which the lessor agrees to provide for the maintenance, repair and upkeep of the equipment during the entire lease term. Full Service Lease A lease in which the lessor agrees to provide one or more services beyond providing the simple use of the equipment; (i.e. services typically include the maintenance, repair, upkeep, insurance and payment of any equipment-based tax assessments). Additional services may include upgrades and replacements, service loaners and any other service that may be logically bundled with the lease of the equipment (i.e. a bundled lease). Full-Payout Lease (1). A lease from which the lessor can reasonably expect to realize a return on its full investment in the leased property plus the estimated cost of financing the property over the term of the lease, from rentals, estimated tax benefits, and the estimated residual value of the property at the expiration of the initial term of the lease. (2). A lease in which the lessor recovers, through the lease payments, all costs incurred, including overhead, in the lease plus an acceptable rate of return, without any reliance upon the leased equipment's future residual value Funding 1. The source of financing for a particular lease transaction. 2. The lessor’s payment of the supplier after the lessee has accepted the equipment for lease, typically as evidenced by the lessee’s execution of the certificate of delivery and acceptance and its delivery to the lessor. Funding Source An entity that provides any part of the funds used to pay for the cost of the leased equipment. Funds can come from either an equity funding source, such as the ultimate lessor in a lease transaction, or a debt funding source, such as a bank or other lending institution. The terminology is frequently used by brokers in referring to lessors, but it can also be used by lessors in referring to those parties who provide lessors with the funds lessors use to purchase equipment. Future Value The value of a payment or series of payments as if they were to be made in the future instead of in the present. FX One of several acronyms for foreign exchange. 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