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 99 result(s). Laches A delay in pursuing a claim such that it becomes legally unenforceable. Lagging Indicators A real estate owner’s right, usually granted by statute, to seize and encumber property on its tenant’s premises for satisfaction of unpaid rent due the real estate owner by the indebted tenant. Landlord’s Waiver A document wherein a real estate landlord acknowledges that certain property on its tenant’s premises is owned by "a third party (i.e. the lessor), and is leased to the tenant and wherein the landlord agrees to recognize and respect the lessors rights and not interfere with the lessor’s respective property. Lapse Termination by act of non-performance (i.e. the lapsing of an insurance policy for failure to pay the premium due). Last In, First Out (LIFO) (Accounting based) A method of inventory accounting which presumes that the goods most recently acquired are sold before goods acquired earlier (opposite of FIFO – First In, First Out). Late Charge A fee charged or assessed for a payment not made or made subsequent to a contractual due date; a late charge often perceived as a fee earned by the “late charge” assessor for the grace period that is allowed from the date the payment was due until the late payment constitutes a default. Lead Time The delay between ordering a good or service and the time it is delivered. Lease A transfer of the right to possession and use of property for a predetermined duration of time and in return for some form of monetary or in rate instances similar barter consideration. Lease Acquisition The process of acquiring a lease transaction in any number of ways; (1). The initial sales transaction, when a lessee is persuaded to enter into a lease. (2). The acquisition of an interest in a lease by a funding source or subsequent lessor without the transfer of all of the originating lessor's interest in the lease. (3). The complete transfer of an originating lessor's interest in a lease to a subsequent lessor. (4). The process whereby a leasing company purchases or acquires a lease from a lease originator (i.e. lease broker, super-broker, other leasing company). Lease Agreement The contractual agreement between the lessor and the lessee that sets forth all the terms and conditions of the lease (e.g. the lease contract). Lease Asset A lease in the portfolio of a lessor, or depending upon the type of lease, on the balance sheet of the lessee. Lease Broker (1). An individual, company or other party who matches lessee’s in need of a particular lease of equipment with a specific funding source willing to finance that kind of transaction; depending on the lease broker, many perform only a matching function while others provide a number of additional value added services, acting as agent for a prospective lessee. (2). An entity that provides one or more services in the lease transaction, but does not retain the lease transaction for its own portfolio. Such services include finding the lessee, working with the equipment manufacturer or dealer, securing debt financing for the lessor to use in purchasing the equipment and locating the ultimate lessor or equity participant in the lease transaction. The lease broker is also referred to as a packager, negotiator or lessee lease financing consultant. Lease Contract The written and legally enforceable lease agreement between the lessor and lessee. Technically, the lease contract is just the master lease (or its single-form equivalent) and the specific documents which are incorporated into it, while the lease agreement is the entire understanding and arrangement amongst the parties to a specific lease transaction. Lease Intended As Security (U.S. based) A lease that is not really a true lease, but a standard secured transaction. Lease Line/Leasing Line (1). A pre-approved amount of borrowing allowed a lessor by a lessor’s ultimate financier(s). The lease line is typically used for acquiring equipment for lease in the normal course of business and is not intended for financing a lessor’s operational expenses. (2). A pre-approved amount of leasing allowed a lessee by a given lessor or lessor’s Lease Origination The process of prospecting, developing, communicating, packaging, pricing, documenting, analyzing, negotiating, closing and ultimately funding a lease. Lease Payment The periodic payment made during the lease term that can be of a constant sum or paid in skip periods, amount escalations, de-escalations or other structure depending on the customization of the lease financing arrangement made between the lessee and the lessor. Lease Period (1)). By true definition - the period of time covered by one lease payment. (2). By most used definition – the aggregate period of time covered by the lease contract or lease agreement. Lease Periodicity The segments of time into which the lease term is divided for purposes of collecting lease payments (e.g. monthly, quarterly, annual, etc.) Lease Proposal A document typically issued by the lessor, in letter form, that expresses the basic terms and conditions upon which the lessor would be interested in doing the lease under discussion. The focus in the proposal is upon financial terms and performance related terms and conditions, and is normally exchanged early in the lease process, setting forth key fundamentals of a prospective leasing arrangement and generally serving as a marketing tool that is not usually designed or intended to constitute a binding contractual offer The periodic payment made during the lease term that can be of a constant sum or paid in skip periods, amount escalations, de-escalations or other structure depending on the customization of the lease financing arrangement made between the lessee and the lessor Lease Rate The periodic payment to a lessor for the use of assets. Typically, synonymous with a lessee’s monthly payment and most often expressed as a percentage rate or in reference to a lease rate factor (LRF). Lease Rate Factor The number that results from dividing the monthly lease payment by the equipment cost (e.g. a lease payment of $2383.77 and an equipment cost of $103,000 will yield a lease rate factor of 0.0251 per month (30.12% per year)). The lease rate factor is an aggregate rate structure which is inclusive of all lessor related costs and margins for a given lease transaction, and is not equitable to the interest rate in a transaction. The interest rate inherent in the lease transaction is only one of several factors used to determine a lessee’s lease rate factor. Lease Registry A database of lease transactions within a specific jurisdiction, and typically maintained by an industry association and/or government-affiliated entity, for the benefit of participating members of the financial community (i.e.. banks, leasing companies, other funding sources, etc.) to assist them in credit evaluation, fraud prevention and regulatory compliance. Lease Syndication The process of involving a number of different lessors and funding sources in providing various percentages of a particular lease's debt and equity components. Typically a hallmark of large lease transactions; a lease syndication can allow any one lessor or funding source to maintain a more prudent and manageable credit exposure and competitive pricing while still providing the lessee with the total financing it desired and/or required Lease Term The length or aggregate duration of a given lease, typically stated in monthly or quarterly increments, but sometimes stated or structured in annually or semi-annual increments. Lease Versus Buy/Lease Versus Borrow Shorthand references to the financial analyses made by a prospective lessee to determine whether or not it is more cost feasible or aggregately advantageous to acquire the use of an asset by leasing, loan or capital “cash purchase”. Leaseable Asset An asset that can be the subject of a lease. A number of countries closely regulate and specify which assets may or may not be leased contracted for under a “leasing” obligation.. Leaseback/Lease-Back The second transaction in a two-stage transaction whereby a party sells (as in a sale-leaseback) or leases (as in a lease-leaseback) property it currently has to a financier and then simultaneously leases it back for some predetermined duration of time. Depending upon the equipment and the structure of the transaction, there may or may not be a purchase option, for a nominal or other amount, at the end of the leaseback period. The technique allows a lessee to convert existing fixed assets into readily-available working capital without disturbing the use of the equipment in daily operation of the business. While sale-leasebacks have been common for years, lease-leasebacks achieve the same purpose without a transfer of the assets' ownership. They are less popular because the financier in a lease-leaseback does not have the collateral interest that comes from ownership of the assets during the term of the financing. Leased Asset Equipment or other asset subject to a lease. Leasehold Both the lessee's and lessor’s respective interest pursuant to a lease. Leasehold Improvement An upgrading, enhancement or positive modification of leased property by either lessor or lessee. Lease-Leaseback/Llease-Lease-Back A two-stage transaction whereby a party leases property it currently has to a financier and then simultaneously leases it back for a predetermined duration of time. Depending upon the type of equipment and the way the transaction is structured, there may or may not be a purchase option, for a nominal or other amount, at the end of the leaseback period. The technique allows for a lessee to convert existing fixed assets into readily available working capital without disturbing the use of the equipment in daily operation of the business. Leasing (1). The act or business of transactions involving an owner of property transferring the possession and use of its assets for a predetermined duration of time, and in exchange for a some form of monetary or related consideration. (2). Leasing is a tax oriented method of gaining the use of an asset that can produce more income or benefits than the cost. A lease can be a method by which a client can obtain either use and/or ownership of an asset while matching a payment schedule to a predetermined budgetary allotment Leasing Company A company whose primary business is the medium to long-term leasing of equipment as a form of equipment finance. The terminology is often used by any entity who facilitates a leasing or financing transaction, but is most accurately used to describe the ultimate entity, typically lessors, who maintain a portfolio of leased assets (i.e. hold paper title). Ledger The books and records of a business or company that serve to identify/and track periodic business operations. Legal Entity/Legal Person A real or fictitious person, entity or groups of persons or entities (i.e. a corporation, partnership, trust, etc.) that the law will recognizes as having the capacity to enter into contracts, lawsuits, contractual business dealings and otherwise act with definitive legal capacity. Legal Owner Typically, the party or business who holds title to specific property; Factually recognized, in some countries, as the party considered as the absolute owner. Legal Rate of Return 1. An interest rate that is not usurious in nature. 2. A yield on an investment that is legally allowed by applicable government based rules and regulations. Legal Tender Money that must, by law, be accepted in payment of a known debt. Checks and credit cards are not technically legal tender, and can be refused in instances specifically calling for legal tender payments. Lek The principal monetary unit of Albania. Lempira The principal monetary unit of Honduras. Lender Liability A legal theory that makes a lender or other financial creditor liable for failing to deal in good faith with its borrower, lessee or similar debtor. The situation usually arises at time when there is a sudden and unforeseen cancellation of a line of credit, a unilateral and often adverse change in "borrowing terms and conditions, the calling of a demand note at the most inopportune time for the borrower, a refusal to provide a traditional or historically customary advance and other similar such adverse actions. The underlying rationale of lender liability is to ensure that a particular creditor cannot inadvertantly change its customary and expected behavior, even though it may have a legal right to do so by contract, without adequate advance notice to the borrower, allowing the borrower reasonable opportunity to make alternative arrangements. Lessee The party to a lease transaction who receives possession and use of the leased assets for the term of the lease, and for payment of a pre-determined monetary sum. The lessee (company or entity) is typically the end-user of the leased equipment, and pays the lessor, typically in the form of rentals for that use. Lessor The party to a lease transaction who gives up possession and use of the leased assets for the term of the lease, and for receipt of a pre-determined monetary sum. The lessor (company or entity) is typically the owner of the leased equipment for accounting, tax or commercial law purposes Letter Agreement A letter that contains terms and conditions that constitute or serve to create a contract between the sender and recipient. A letter agreement can be just as legally enforceable as a fully formal contract. Letter of Credit An agreement in letter style from one commercial banker to another authorizing payment of a sum to the party specified in the letter upon the existence of the specific conditions stated in the letter of credit (i.e. presentation of shipping documents, warehouse receipts, etc.). Letter of Intent A letter issued by one party to another in connection with contract negotiations to the effect that the party intends to pursue the negotiations to the conclusion of contract execution. Letters of intent are typically drafted so as to reduce the likelihood that the letter itself would be a contractual agreement or binding commitment and/or obligation. Level Payments Lease payments that remain the same or constant for each lease payment and throughout the duration of the lease term Level Yield Payoff A common method of calculating an early termination liability designed to provide the lessor with the same annual yield that would have been received had the lease gone full term, regardless of when during the term the termination was made (i.e. also referred to as a early termination schedule). Leverage (financial ratio analysis based) The ratio of debt to equity in a transaction in a business. Leveraged Buy-Out The acquisition of one business entity by another whereby the assets of the acquired entity secure the financing of the buyer’s acquisition costs. Leveraged buy-outs typically involve the creation of significant debt, with the assets of the acquired business becoming severely encumbered. Leveraged Lease (1). A specific form of lease involving at least three parties: a lessor, lessee and funding source. The lessor borrows a significant portion of the equipment cost on a non-recourse basis by assigning the future lease payment stream to the lender in return for up-front funds (the borrowing). The lessor puts up a minimal amount of its own equity funds (the difference between the equipment cost and present value of the assigned lease payments) and is generally entitled to the full tax benefits of equipment ownership. (2). In this type of tax lease, the lessor provides an equity portion (usually 20 to 40%) of the equipment cost, and lenders provide the balance on a non-recourse debt basis. The lessor typically receives the tax benefits of ownership. Levy 1. An assessment placed against tangible property, by a governmental or related regulatory authority. 2. A form of tax. Liability A legally binding monetary obligation of an individual or business entity typically arising from the receipt of a capital good, service or related benefit to which a payment incurrence is initiated. Liability Insurance Insurance against claims, costs and other expenses arising from injury to persons or property as a result of the insured’s negligence, similar actions or the impacting negligence of other third parties. LIBOR Acronym for and shorthand reference to the London Inter-bank offered rate, the rate of interest on short-term loans between top London banks (equivalent to the U.S. based prime rate). License 1. A legal enforceable right to engage in a certain type of business activity or other conduct as granted by a regulatory authority. 2. A legal right to make use of property or utilization of the property interests of another (e.g. software licenses). Licensing Agreement An agreement that provides one with a legal right to make use of property or utilization of the property interests of another (i.e. software license agreement). Lien A legal enforceable and binding encumbrance upon some form or multiple forms of property. LIFO Accounting An acronym for last in, first out, an inventory accounting methodology that presumes that the goods most recently acuired are sold before goods acquired earlier (i.e. opposite of FIFO – first in, first out). Limited A designation of a Limited Company; a company with limited liability; a corporation (often abbreviated – Ltd.). Limited Liability The “risk mitigated “ circumstance whereby only some portion of a party’s assets are exposed to the claims of its creditors. Limited Liability Company A company in which the personal assets of the company’s shareholders are generally not exposed to the claims of the company’s creditors. The liability of the company owners is “risk mitigated” and limited to only the full extent of their respective investment in the business. Limited Partner The partner in a limited partnership who provides only money or other similar capital, who does not participate in the daily management of the business, and whose liability is therefore limited only to such investment in the business. A limited partner’s personal assets are typically not exposed to the claims of the business’ creditors. Limited Partnership A partnership comprised of one of more general partners and one or more limited partners. The general partner actively manages the business of the partnership and is fully liable for the claims of the business’ creditors. The limited partners do not participate in the daily management of the business; exposure to both general and limited partners to the claims of the business’ creditors is generally limited to respective investments in the business. Limited Power of Attorney A legal authority granted pursuant to a written agreement, to act on behalf of another in certain limited respects (i.e. a limited power of attorney to sign financing statements on behalf of a lessee). Much more limited in nature than a general power of attorney granting authority to act on behalf of another in all respects Limited Use Property Property that will retain value only so long as it is used in its current installation or which would have no value in the hands of another user (i.e. a custom system software designed to work only in a specific type of equipment or one-of-a kind machine tool that would not be useable except in the current manufacturing operation in which it is employed). Line of Credit A pre-approved amount of borrowing allowed a debtor by a creditor or a number of creditors. Liquid Assets Assets that are readily convertible to cash (i.e. cash equivelants). Liquidated Damages An amount set forth in a contract that is agreed to be the amount due one party from a breach of the contract by the other party. Enforceability of liquidated damage claims must be deemed reasonable in respect to anticipated and/or actual harm incurred. Liquidation The final sale or active sell-off of all of the assets of a business or company in connection with the termination of ongoing business operations and the conclusion of all outstanding affairs of the entity. Liquidation Value The aggregate value of an item in a distress sale (e.g. going out of business sale – typically ranging from single item to total company Liquidity The ability to generate cash and other means to meet financial obligations as they arise or come due. Liquidity Preference A borrower, lessee or other financial debtor who is more interested in preserving the flexibility of its working capital than in minimizing interest charges (e.g. a party with a liquidity preference would rather avoid a down payment, retaining the extra working capital it represents than to reduce the total interest on the loan by making the down payment). Liquidity Ratio (Financial ratio analysis based) A series of financial ratios used to measure a business' ability to meet current liabilities or short-term debt obligations (i.e. current ratio, quick ratio, acid test ratio, inventory turnover and accounts receivable turnover). List Price The manufacturer's suggested retail price for an item. List prices more often than not, do not accurately represent the actual customary price found in a specific marketplace. Litigation The act or ongoing process of a lawsuit between one or multiple parties. Lloyd’s of London The renown insurance underwriters group in London; best know for insuring large and/or unusual risks. Loan An extension of credit and/or actual monetary advance with a predetermined re-payment amount and duration structure. Loan Rate The specific interest rate assessed on a loan Loan Syndication The process of involving a number of different lenders in providing various percentages of a loan; typically utilized in very large loan situations, a loan syndication can allow any one lender to maintain a more prudent and manageable credit exposure and competitive rate structure while simultaneously providing the borrower with the total financing it needs. Loan Value The outstanding principal balance remaining on a loan. Loan/Lease Application The document in which a party seeking a loan or lease provides information about themselves, their credit history, business activities, bank, trade and personal references and other information sufficient to enable the potential lender/lessor to decide whether or not to make or grant a loan or lease. Loan/Lease Application Fee A non-refundable fee charged for the processing of a loan or lease application Loan/Lease Participant A lender/lessor who participates in the syndication of a loan or lease. Loan/Lease Participation Agreement The agreement amongst all lenders in the syndication of a loan/lease, that addresses how loan/lease payments are apportioned to various participating lenders/lessors, priorities in the event of default, insolvency, bankruptcy, casualty and other various rights and responsibilities of the various lenders/lessors to one another. Local Taxes Taxes assessed by a city, town or similar low level political subdivision (i.e. non state or federal level); taxes assessed on the ownership of equipment tend to be assessed at the local level rather than the federal level, while value-added and income taxes tend to be assessed at all levels, but particularly the federal level. Lockup The U.S. Securities and Exchange Commission (SEC) rule that prevents company insiders from selling stock until at least six months after an initial public offering (IPO). London Inter-bank Offered Rate (LIBOR The rate of interest on short-term loans between top London banks (i.e. similar to the U.S. based prime rate). Long Term Lenders Term typically used to describe the institutional lenders supplying debt (up to 80% of equipment cost) for leverage leases. Lenders receive no tax benefits from the lease but receive a fixed rate over a long term. Long-Term Debt Debt obligations with a maturity of greater than one year. Long-Term Lease A lease obligation with a maturity of greater than one year. Long-Term Portion of Long-Term Debt As depicted on a business’ balance sheet, all debt obligations with a maturity of greater than one year, but net of the current year's portion. Loss 1. (Business operations based) – The occurrence of net revenue inflows at a lower level than net cost outflows (company wide or individual transaction based). 2. (Insurance based) - The occurrence of a casualty or liability. 3. (Lending and leasing based) - The occurrence of a lease or loan default resulting in a write-down or write-off. Loss Allowance The amount allocated in a budget or in a financial statement for the occurrence of losses that may reasonably be anticipated and/or incurred over a given time period. Loss Payee A party entitled to receive proceeds from an insurance settlement arising in connection with a covered casualty or loss. Low-Ball Bid A bid or proposal that is artificially low for the purpose of winning the job or opportunity at almost all costs. In some instances low-ball bids are provided, but post award contractual negotiations often lead to higher rate structures or more punitive contractual terms and conditions than first quoted which is often referred to in the industry as “bait and switch”. Low-High Rental A lease with an uneven payment structure that typically starts with a lower payment first and then steps-up to the higher payment and some point or multiple points during the lease term (i.e. a step-up lease). Ltd An abbreviation of Limited; a corporation. 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