Banking & Finance

What is liquidity risk?

The possibility of financial loss or lower-than-expected returns due to the inability of a finance provider (bank, leasing company) to meet its funding needs at a cost that is not...


What is liquidity and solvency analysis?

Balance sheet analysis is commonly conducted quarterly and annually to help lenders and other creditors, investors and financial intermediaries determine the company’s creditworthi...


What is lien perfection?

The security interest of a creditor (lender/lessor) in personal property is perfected upon the filing of the financing statement with the appropriate authorities.  Lien perfection...


What is leveraged acquisition finance?

Leveraged finance is funding provided to a borrower that has a non-investment (speculative) grade rating, generally in the form of structured finance arranged in several facilities...


What is lease termination?

Lease termination is the discontinuation of a lease either voluntarily before the scheduled end of its contractual lease term, involuntarily or cancellation by the lessor.  The ter...


What is lease termination risk?

The early termination of finance leases, which is a form of options risk, could have a significant impact on the lessor.  The risk of a lessor’s potential loss due to the early, un...


What is lease term?

The date when a lease agreement closes or the parties commit to the principal provisions of the lease, whichever is earlier, is lease inception.  This is when the lessor and the le...


What is lease syndication?

Lease syndication is the process of marketing the debt and any equity funding of a big-ticket lease to providers of a lease’s debt and equity components through the sale of the ass...


What is lease credit risk modelling?

Although finance leases may be viewed as collateralized lending and assessed using similar risk-rating criteria, the lessor’s ownership of and ability to repossess the leased asset...


What is lease amortization?

The value of a limited-life asset’s is reduced as a result of the passage of time or its use in the production of goods and services by means of amortization.  A leased asset’s amo...


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