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). Rate A charge determined as a percentage or multiplier of a base amount (i.e. lease or interest rate) Rate of Return The yield on an investment. Rating The grade or strength/performance level indicator given to the creditworthiness of a business by a rating agency such a Standard and Poor, Moody's or other similar credit evaluation group). Rating Agency A business that collects, evaluates, scales and grades the creditworthiness of businesses. Real Estate Waiver A document obtained by a lessor from a mortgage lender or similar interest holder in which they agree not to assert any interest superior to that of the lessor in the leased equipment located at the real estate in which the mortgage lender has a secured interest. Real Property Land and any applicable improvements Realized Value The actual value of leased property as determined by appraisal, sale or other disposition at the conclusion of the lease term. Rebate A monetary refund of part of the purchase price of a particular item. Recapture The act of rescinding and recovering a credit or deduction previously taken Receipt 1. Income derived from sales. 2. The consequence of delivery. 3. The document that delivery or payment. Receivables Monies that have been earned but not yet received Receiver The person appointed to manage the wind-up of business affairs and liquidation of an insolvent business entity Receivership The legal situation of an insolvent business for which a receiver has been appointed to manage the wind-up of business affairs and liquidation of an insolvent business entity. Recourse (1). A type of borrowing in which the borrower (a lessor funding a lease) is fully at-risk to the lender for repayment of the obligation. The recourse borrower (lessor) is required to make payments to the lender whether or not the lessee fulfills its obligations under the lease agreement. (2) A legal condition that provides the ability to pursue a party which has transferred an item, particularly a financial asset involving an extension of credit, if there should be a default in the transaction which was transferred. Recourse Agreement (1). An agreement that provides the ability to pursue a party which has transferred an item, particularly a financial asset involving an extension of credit, if there should be a default in the transaction which was transferred. (2). An agreement with a vendor whereby the vendor will purchase or repurchase the lessor's interest in a lease, usually upon demand, after default of the lessee. Generally, the lease must be in default and a reasonable amount of collection effort exerted by the lessor. Recourse Assignment The legal transfer of an item, particularly a financial asset involving an extension of credit, such as a lease or a loan, to a funding source or other party, with an agreement that upon default by the borrower or lessee, the transferor will cover all or part of a loss to the transferee. Recourse Debt Debt for which all assets of the borrower are liable. Recovery Period (Accounting based) The period over which depreciation is taken; the capital cost recovery period. Refinance/Refinancing The act of revising or rewriting a financial arrangement to reflect new and different terms/conditions. Refund A return of a purchase price or fee, in whole or some portion. Refundable A charge for goods or services that is subject, at the discretion of the buyer, to being returned to the party receiving payment for goods and services rendered. Refundable Security Deposit A security deposit paid at the inception of the lease by the lessee with the understanding that it will be returned to the lessee at the end of the lease if all payments have been timely made and the lessee otherwise has properly performed as agreed. Registered Agent (U.S. based) The individual designated in the state corporation records as the official contact representative of the corporation for state licensing and regulatory matters and who is the proper party for service of papers commencing a lawsuit or other legal action against the corporation. Registered Mail Mail for which the handling and delivery process is documented Registered Owner The owner of a motor vehicle for purposes of the vehicles registration Registry (Leasing based): A list of lease transactions maintained by a leasing association, government agency or other group; a registry typically identifies the date of a lease, a description of the leased equipment and contact information for the lessor and lessee; registry’s are often utilized to prevent fraud and aid lessors by avoiding multiple funding of the same equipment. Reinvestment The act of redeploying earnings or other monies into new transactions or similar investment opportunities. Reinvestment Rate The yield on redeployed earnings or other monies into new transactions or similar investment opportunities. Release 1. Not to hold liable. 2. The written agreement by which one agrees not to hold another liable. Relief From The Automatic Stay (U.S. bankruptcy based) Permission from the bankruptcy court to recover collateral and take other limited action with respect to a debtor. Remaining Basis (Tax based) The amount remaining available for further depreciation deductions after subtraction of all deductions taken to date. Remarketing (1). The process of selling, re-leasing or otherwise disposing of off-lease or owned (capital depreciated) equipment. (2). The process of selling or leasing the leased equipment to another party upon termination of the original lease term. The lessor can remarket the equipment or contract with another party, such as the manufacturer, to remarket the equipment in exchange for a remarketing fee, or as part of a leasing program. Remarketing Agreement An agreement by which a vendor agrees to help sell equipment that the lessor has purchased from the vendor "when that equipment comes off-lease, whether at the end of the scheduled lease term or earlier because of a default or other termination; the remarketing agreement sometimes is expanded to cover refurbishment of the equipment, a division of sale proceeds, and the vendor's required marketing and sales efforts. Renewal Option An option exercisable by the lessee at the end of the lease term that allows the lessee to extend the lease term for an additional predetermined period of time beyond the expiration of the intial lease term (i.e. an additional month, quarter, year, two years, etc.), and often involves some reduction in the original periodic lease payment for the duration of the renewal period. Renewal Provision A reference to a renewal option. Rent (Leasing based) The periodic lease payment. Rent Flip A switch from rents paid in arrears to rents paid in advance, and vice versa, at some interim point in the rental period. Rent Holiday/Rent Vacation A period during which the lessee does not have to make the periodic lease payments that it normally would have to make (i.e. skipped rents and some forms of step payments). Rent holidays predetermined and mutually agreed by lessee and lessor and do not refer to or constitute missed payments that is an act of default in most standard lease agreements. Rent Split Rent split into two components within a given rent period, with one component paid in advance and one paid in arrears within each rent period. Rental 1. A short-term lease; as typically utilized, rental most often implies shorter lease or periods (i.e. typically 12 months or less). 2. A reference to the periodic lease payment. Rental Agreement 1. A short-term service (non-residual based rental) lease, typically with durations 12 months or less. 2. A lease agreement Rental Company 1. A company engaging in the business of short-term rentals/leasing. 2. A lease company. Rental Factor A yield in a rental transaction; the rental factor is generally applied to equipment cost to determine the periodic rental payments (i.e. lease rate factor, rental rate, LFR, etc.). Rent-To-Buy Agreement/Rent-To-Own Agreement A rental agreement in which the lessor transfers title to leased assets upon exercise of a nominal purchase option at the end of the lease term; rent-to-buy agreements are typically found in consumer markets and involve shorter lease terms. Rent-To-Buy/Rent-To-Own An abbreviated reference to a rent-to-buy agreement or the term for rent-to-own (i.e. renting/leasing with an option to purchase at some predetermined point during the rental). Reorganize/Reorganization To restructure or the act of restructuring a business, particularly with reduced or altered debt, relationship and contractual obligations Rep 1. A sales agent of any type. 2. An abbreviated reference to representations and warranties (i.e. used to collateralize Repatriation A return of profits from a foreign subsidiary to its domestic parent corporation. Repossession The act of a self-help recovery of collateral by a lender or owned property by a lessor without judicial assistance. Representation A statement of fact that induces one to a contract. Representative A person or company authorized to act on behalf of another (i.e. an agent). Repudiation The advance stated intention not to perform a legal obligation, particularly a contract obligation, at the time the performance is due. Repurchase Agreement 1. An agreement between a vendor and a lessor that the vendor will repurchase the equipment and the lease transaction in the event of a default by the lessee. 2. An agreement between a lessor and a funding source that a lease acquired by the funding source, on a non-recourse basis, will nevertheless be repurchased by the lessor if there should be a breach of the lessor's representations and warranties made to the funding source as part of the non-recourse transaction. Reserve (Accounting based) An account specifically established to cover losses on uncollected receivables. Residual An abbreviated reference to residual value. Residual Dependence The pricing of a lease transaction that requires the achievement of the expected residual in order to achieve the desired return or required profit in a particular lease transaction. Residual Insurance Insurance coverage that provides for a loss arising from the specified residual not being realized. Residual Sharing An agreement between a lessor and others (i.e. vendors, lease brokers, lessee, other funding sources, etc.) interested in the transaction for the purpose of apportioning the proceeds of the residual, at lease end, amongst themselves. Residual Value Certificate A certificate issued to represent ownership of an undivided interest in the residual of leased equipment. Residual Value Forecast A formalized prediction of the future residual values of leased property at the end of the lease term, and at a number of interim points throughout the lease term. Residual Value Insurance Insurance coverage that provides for a loss arising from the specified residual not being realized. Residual Value/Term Value The value of the leased property (actual or estimated) at the end or the interim termination of the lease term as typically estimated at the time the lease is executed. Despite the fact that the terms residual value and term value are sometimes used in reference to the actual value of the leased property at the conclusion of the lease term, its the term "realized value" that is most appropriately utilized to describe the actual value of the leased property at the conclusion of the lease term. Resolution An abbreviated reference to a corporate resolution, a document that typically evidences an action of the board of directors of a corporation. Restrictive Covenant A provision in a contract that prohibits the existence of certain conditions, such as debt leverage exceeding certain financial ratio benchmarks or the taking of certain corporate actions (i.e. major financing or restructuring) without appropriate consent Restructure/Restructuring To reorganize or the act of reorganizing a business, particularly with reduced or altered debt, relationship and contractual obligations Retail Market (Leasing based) The leasing market involving lease transactions in the US$5,000 to US$100,000 range of equipment cost (i.e. micro-ticket leases, small-ticket leases). Return The amount earned on an investment or other unrelated business activity; the yield on a transaction. Return On Assets (ROA) (Financial ratio analysis based) A financial analysis tool measuring performance of assets. ROA is a common measure of profitability based upon the amount of assets invested and is typically derived by (a) dividing net income by average total assets or (b) dividing net income available to common stockholders by average total assets. Return On Equity (ROE) (Financial ratio analysis based) A financial analysis tool measuring performance of equity. ROE is a common measure of profitability related to the amount of invested equity and is typically derived by (a) dividing net income to average owner’s equity or (b) dividing net income available to common stockholder’s by average common equity. Return On Investment (ROI) (Financial ratio analysis based) A financial analysis tool measuring performance of an overall investment and derived by dividing net income by average total assets. Revocable Letter Of Credit A letter of credit that can be cancelled by the issuing bank. Revocable Trust A trust in which the grantor of property to the trust can take the property back. Revolving Credit/Revolving Line Of Credit An extension of credit in which a party agrees to advance funds over a period of time up to a stated maximum “ceiling” amount outstanding at any one point in time. Typically as advances are repaid and more advances are taken, the amount outstanding at any one time fluctuates, thus, the credit allowable to the party fluctuates up and down. Right Of First Refusal A verbal or written right to have another party present a proposed transaction to the primary party first, and prior to it being presented to any other potential party to a transaction. Rights Legally protected, and often contractually binding, entitlements and/or privileges Rights and Remedies Terminology typically utilized in conjunction and reference to contract default situations whereby various references and options (i.e. protection of interests clauses) are detailed and available to the non-defaulting party. Rights In The Collateral The interest of a debtor in property that must exist before any security interest in the property can be attached for the benefit of the debtor's secured party. Ringgit The principal currency unit of Malaysia. Risk Assumption The legal doctrine that a party to a transaction must bear the consequences of its own behavior (i.e. Assumption of Risk contract clause). ROA Acronym for return on assets. ROE Acronym for return on equity. ROI Acronym for return on investment. Rolling Stock (Commercial equipment based): Railroad engines and cars. Rollover To replace existing equipment or an existing investment with another that is substantially similar in kind to the previous one (i.e. like for like). Ruble The principal monetary unit of Russia. Rule of 78ths An accelerated depreciation method of allocating periodic earnings in a lease based upon the sum-of-the-years method Running Rate (1). The rate in a lease that corresponds to the interest rate on a loan with a loan payment structure equivalent to the lease payment structure; the discount rate that makes the present value of the lease payments equal to the cost of the leased equipment. (2). The rate of return to the lessor, or cost to the lessee, in a lease based solely upon the initial equipment cost and the periodic lease payments, without any reliance on residual value, tax benefit, deposits or fees (i.e. street rate, run rate or street rate). Rupee The principal monetary unit of India, Pakistan, and Sri Lanka. Rupiah The principal monetary unit of Indonesia 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