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 89 result(s). IBRD Acronym for the International Bank for Reconstruction and Development, also known as the World Bank." ICC 1. Acronym for the International Chamber of Commerce. 2. (U.S. based) Acronym for the Federal Interstate Commerce Commission. IFC Acronym for the International Finance Corporation, a member of the World Bank group. Illiquid Without access to ready cash. IMF Acronym for the International Monetary Fund. Immoveables Land and any related improvements. Implicit Rate The discount rate that, when applied to the minimum lease payments (excluding executory costs) together with any un-guaranteed residual, causes the aggregate present value at the inception of the lease to be equal to the fair market value of the leased property. Implicit Yield The internal rate of return in a lease transaction Implied Authority The authorization of a party to act on behalf of another party that arises from the nature and circumstances of the activity at issue rather than from clear, direct, or documented evidence of authority. Implied Warranty Warranties created in a contract by statute or other law without action by either contracting party, such as an implied "warranty of merchantability, fitness for a particular purpose, non-infringement or quiet use and possession; most implied warranties can typically be disclaimed if the parties mutually agree. Improvements 1. The addition of man-made structures, earth works (such as roads) or other changes to a given piece of land or property. 2. Upgrades made to equipment or other personal property. Inception Of The Lease (Accounting based) The earlier of (a) the date the lease agreement is signed or (b) the lessor's commitment if certain conditions are met; it is not necessarily the date the lease payments start, but can be the start of the lease term. The inception of the lease determines when the lease must be recorded in the books of both parties (i.e. lessee & lessor). Incidence Of Taxation 1. The specific event that creates a tax liability (i.e. a taxable event). 2. The ultimate effect of a tax event (i.e. a tax on a “goods producer” will ultimately be borne by customers in the form of higher prices for finished goods). Income Statement The financial statement of a business that shows income and expenses (i.e. a profit and loss Statement or P/L Statement). Inconvertibility The inability to exchange one currency for another currency, particularly the inability to exchange a soft currency for a hard currency (i.e. inability to exchange a stable currency for a highly volatile currency). Incorporated The status of a business as a corporation Incorporation The process of chartering a business as a corporation, with the rights, privileges, and benefits thereof, including limited liability for the shareholders, longevity, and other benefits. Incremental Borrowing Rate (Accounting based) The rate that the lessee would have to pay to borrow funds in a financing structure comparable to the lease, (i.e. the rate for a coterminous (same duration as the lease term), secured (with the equipment as collateral) fixed payment, installment loan. The incremental borrowing rate is often used as the lessee's discount rate when reducing minimum lease payments to present value for purposes of classifying the lease as capital/finance or operating lease. Incremental Tax Rate The tax rate assessed on the next currency unit received. Indemnification The process of agreeing to reimburse another for specified losses. Indemnification Clause A provision in a contract or other agreement by which a party agrees to reimburse another party for losses described in the provision. Indemnify/Indemnity To agree to reimburse another for specified losses. Indemnity Agreement An agreement to reimburse another for specified losses Independent Lessor A leasing company not affiliated with a manufacturer, vendor or bank, in any capacity. Being independent of any one manufacturer, and the like, independent lessors often purchases equipment from various unrelated Independents An abbreviated reference for independent lessor Indexed Directly tied to a third party indicator. Indexed Lease A lease whose payments vary over the lease term in accordance with changes in a pre-chosen index (i.e. prime rate or LIBOR). Indexed Rate a lease payment computational rate that is tied to changes in a pre-chosen index (i.e. prime rate or LIBOR) that generates variable lease payment amounts over the duration of the lease term. Indirect Costs Business overhead that is not directly attributable to a specific good or service (i.e. general and administrative expenses Inflation Depreciation in the value of money; the circumstance of a currency unit promised in the future being worth less than a currency unit in hand today (i.e. the opposite of deflation). Inflation Accounting A financial reporting method that provides adjustment for the effect of inflation. Inflows Income; revenue. Infringement The appropriation or impairment of another's intellectual property in violation of law or contract.. Initial Direct Costs (Accounting based) Costs incurred in originating and booking a lease transaction. Initial Public Offering A privately held company's first offering of stock to the public Injunction A court order that restrains a party's (business) conduct is a specified manner. Inland Revenue The national tax authority in the United Kingdom Innovation Market New and rapidly developing/changing market (i.e. computer and communications technology markets). Insolvency 1. The inability to pay one's debts as they come due (i.e. cash flow insolvency). 2. Liabilities in excess of assets (i.e. balance sheet insolvency). Installment 1. A single payment in an installment loan repayment series. 2. A single advance in a financing commitment that provides for a series of advances over time. Installment Loan A loan that is repaid in a series of payments over time rather than in a single lump sum; installment loans routinely have periodic payments (i.e. commonly on a monthly basis). Insurable Interest An interest capable of being protected through a specific policy of insurance. Insurance A contract that provides payment to one or more of its contracting parties in the event of a casualty or other circumstance of loss. Insured Value The value of property that will be used for settlement of a claim against an insurance policy (i.e. original cost, depreciated value, replacement cost or the like). Insured Value Schedule A list of values for various items of property, sometimes with values declining over specified periods of time that will be used for settlement of a claim against an insurance policy. Intangible Asset An item of value that does not have a physical presence (i.e. goodwill, intellectual property, similar “non-tangible items). Intangibles An abbreviated reference to intangible assets. Integration/Integration Clause The legal consequence of an integration clause in a contract, legally disclaims that the contract contains the complete and final agreement of the parties respecting the subject of the contract and that all prior related negotiations, agreements or intentions are superceded, and thus, integrated into and replaced by the contract Intellectual Property IP) Patents, trademarks, service-marks, copyrights and property of a similar nature. Intellectual Property Rights Rights respecting the ownership, distribution, transference, and manipulation of interests in patents, trademarks, service-marks, copyrights, etc. Inter-company/Inter-company Transactions Transactions and/or similar dealings between companies that are similarly affiliated or related in some manner (i.e. transactions between subsidiaries and a parent corporation). Interest A charge for the use of money, typically repaid over a predetermined duration of time. Interest Rate A charge for the use of money expressed as a percentage, and typically repaid over a predetermined duration of time. Interest Rate Adjustment A change in an interest rate, typically as a result of a change in the index or other factor upon which the rate is initially based. Interest Rate Cap/Ceiling An upward limit or “ceiling” on increases in a variable interest rate. Interest Rate Swap An agreement between two parties, each with an interest payment obligation, to pay the interest obligation of the other party. The swap essentially allows the party with the better credit rating, and thus the lower rate, to "rent out" its rating for some predetermined fee. The less creditworthy party gets reduced interest payments and the better creditworthy party gets, in effect, a financial return on the rating itself. Interim Financial Statement A financial statement issued for a period of less than one year; interim financial statements are typically un-audited or only “internally audited”. Interim Rent Interim rent is a one-time daily rental charge for a period of time between the day the equipment is delivered and/or accepted, and the first invoice date. It is a partial payment for using the equipment during a partial month, and will be billed to the lessee on the first invoice. Interim Rent Typically, the rent charged for the period of time between the execution of a lease and the commencement of the regular, period lease payments. Interim rent is usually needed because of multiple equipment deliveries and the inherent lapse of time between the delivery of the first leased item and the final leased item or because the leased assets involved take some time to manufacture, deliver, install or otherwise converted into operational or useable assets. Internal Audit An audit conducting by the employees of a given business or company, rather than by an outside accountant. Internal Rate of Return The discount rate that equates the present value of an income stream (i.e. cash inflows – lease payments, purchase options, etc.) with the present value of its related expense stream (i.e. cash outflows – equipment or investment cost, etc.). The IRR is the most common method utilized to compute yields. Internal Revenue Service (U.S. based) The federal agency charged with collection of federal income, estate, gift and other “national” taxes. It is the equivalent of Inland Revenue in the UK and numerous other countries. Internal Revenue Service Rulings Applicable rulings to the leasing industry worth noting are IRS Revenue Ruling 55-540 (1955) & Revenue Procedure 75-2 1. Both of these relate to how the IRS treats a lease for tax purposes, that is, whether it is a lease or sale. RR #55-540 looks at this from the viewpoint of the lessee and can be summarized by the conditions described as necessary for an Operating Lease. RP #75-21 addresses the same issue, but from the lessor viewpoint. this procedure, which came twenty years after RR 55-540, defines in detail the requirements that must be met with in order for a transaction to be construed a true lease. By IRS official rulings, true leases (operating leases) are defined by the following: (1). The lessor must have a 20% minimum at-risk investment in the property at the inception, during and at the end of the lease term. (2). The exercise price of any lessee purchase option must be less than the fair market value. (3). The lessee may not make an investment in the lease, nor can it lend to the lessor any purchase money or guarantee any lessor loans. (4). The value of the property at the end of the lease term must be equal to at least 20% of the property's original cost, and the useful life of the property at the end of the lease term must be equal to the greater of (a) one year or (b) 20% of the original estimated useful life. (5). The lessor must have positive cash flow and a profit from the transaction independent of tax benefits. (6). A lease with step-up or step-down payments must fall within certain guidelines. International Accounting Standards Committee The international group that establishes and oversees the generally acceptable accounting rules and procedures for world nations and global business standardization. International Bank for Reconstruction and Development The World Bank International Court of Justice The internationally established judiciary, sitting in the Hague, Netherlands, which hears certain types of lawsuits between nation states; it does not hear commercial disputes between private parties or businesses International Finance Corporation a member of the World Bank group involved in development of the private sector in various countries, particularly developing nations or countries with transitional economies, through direct company investment, technical assistance to government and various other diverse activities and programs. International Leasing A lease in which at least one of the three parties to the transaction (i.e. lessor, lessee, and supplier) is from a country different from the other party or parties (i.e. cross-border lease). International Monetary Fund A United Nations agency established to promote monetary cooperation among nations in the assistance of international trade, business relations and domestic development. Inventory Assets held for sale in the regular course of business. Inventory Lease A lease where the leased assets comprise some of the inventory of the lessee’s business, (e.g. such as the lease of the movie cassette stock “inventory” of a video home rental store). Inventory Turnover The total cost of goods sold or total sales, whichever applicable for a given organization, divided by the average inventory held during the measured period; inventory turnover is a financial analysis ratio based assessment tool that is often used as one of many criteria in determining the creditworthiness and/or value of a business Investment Bank A business involved in advising, underwriting and managing securities offerings, mergers and acquisitions, securitization’s and similar corporate finance activities; investment banks do not generally focus on or emphasize commercial loan based transactions similar to traditional commercial oriented banking institutions. Investment Grade Credit Generally refers to a lessee of high credit standing. Technically, an investment grade credit is a company rated highly by one of many recognized credit agencies such as Moody’s and Standard & Poor's. Investment Tax Credit (ITC) (U.S. tax based) (1). A credit against taxes otherwise due from a taxpayer under the Internal Revenue Code; the credit is generally computed as a percentage of the costs of certain specific types of assets. (2) An ITC permits a tax paying entity to claim a credit on the federal tax return (a direct offset to tax liability) as a result of ownership of qualified equipment. The ITC was generally repealed by the Tax Reform act of 1986, for all equipment place in service after 1985. Invoice 1. A bill or a documentary receipt for delivered goods and/or performed services. 2. The act of billing for goods and/or services. Involuntary Bankruptcy A bankruptcy petition filed by a group of creditors against a party rather than a petition filed by the party itself; involuntary petitions usually call for a court-ordered liquidation of the parties assets. IPO Acronym for initial public offering. Ipso Facto Clause (U.S. bankruptcy based) The legal clause in a contract that provides that the mere filing of a bankruptcy petition is an event of default; these clauses are void and unenforceable pursuant to the Bankruptcy Code. IRR Acronym for internal rate of return. Irrevocable Letter of Credit A letter of credit that cannot be cancelled or terminated by the issuing Irrevocable Trust A trust in which the grant of property to the trust, cannot be reversed for any reason. IRS (U.S. based) Acronym for the Internal Revenue Service Islamic Banking The business of finance conducted in accord with the Qu'ran, that forbids a charge of interest for the use of money or the engaging in speculation for profit; such activities are deemed highly illegal with stringent punitive recourse in some Islamic nations. Islamic Law Legal principles, statutes, rules and regulations issued in accord with the Qu'ran; Shariah. Issue A security or the act of issuing a security. Issue Price The initial price that a security is released for sale. Issued and Outstanding An abbreviated reference to the number of a company's shares that have been authorized and actually transferred to its shareholders; the term is used in reference for both public and private companies. ITC Acronym for investment tax credit. 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