Finance terms starting with L

16 terms starting with L

Landlord insurance

Landlord insurance is cover for a rental property owner, protecting against tenant related loss such as damage, theft and lost rent, plus legal liability.

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Lease

A lease is a contract giving the lessee the right to use an asset owned by the lessor for a set term in return for payments.

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Lease payments

Lease payments are regular amounts a lessee pays a lessor for the use of an asset over a set term, bundling a finance charge with fees and sometimes services.

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Lease purchase

A lease purchase is a lease over a vehicle or equipment with a contractual option to buy it at the end for a pre-agreed residual value.

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Lease rate factor

A lease rate factor is the monthly rental a lessor charges per dollar of equipment cost, used to price a lease without quoting an annual rate.

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Lease term

A lease term is the agreed period a lease runs, from the commencement date to expiry, which sets when rent or rentals are payable and when the lease can end.

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Lease vs buy

Lease vs buy is the choice between paying to use an asset for a set term and owning it outright or with finance.

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Lessee

A lessee is the party that takes the right to use an asset, such as premises, a vehicle or equipment, from the lessor under a lease.

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Lessor

A lessor is the party that grants a lease of property, goods or equipment to a lessee, keeping legal title while the lessee has possession and use.

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Liability

A liability is a legal responsibility to pay money or answer for a loss; in accounting, a present obligation to transfer an economic resource, shown on the balance sheet.

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Lien

A lien is a legal right a creditor holds over another person's property, such as goods or land, as security until a debt is paid.

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Line of credit

A line of credit is a revolving credit facility with an approved limit that you can draw, repay and redraw, paying interest only on the drawn balance.

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Liquidation

Liquidation is the process of winding up a company: a liquidator takes control, sells its assets, pays creditors in a set order of priority and the company is deregistered.

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LMCT (licensed motor car trader)

An LMCT (licensed motor car trader) is a dealer licensed under Victoria's Motor Car Traders Act to buy, sell or exchange vehicles as a business, giving buyers statutory protections.

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Loan

A loan is money advanced by a lender to a borrower, repaid as principal plus interest over an agreed term under a contract.

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Loan-to-value ratio (LVR)

A loan-to-value ratio (LVR) is the amount you borrow as a percentage of the value of the security, usually property, and a key measure of lending risk.

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