My Nguyen
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Articles
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Lease Purchase
FormalA Capital Lease (see definition) that specifically allows the customer a right to purchase the equipment at the end of the lease period. Therefore this is a form of Hire Purchase - with all t...
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Leasing
FormalJust one form of finance available to a company to fund the use of Capital Equipment. Containing many tax advantages, and elements of a ‘residual value’ of the asset making this form of finan...
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Leverage
FormalA term used to describe a range of techniques for companies whereby one relatively strong part of an entity - cash, assets, profit streams etc - is used as a lever to gain disproportionate ad...
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LIBOR - London Inter Bank Offered Rate
FormalIn the UK, the London Inter Bank Offered Rate. This is the wholesale interest rate used when banks lend money to each other.Real-world ExampleA commercial loan is priced at 'LIBOR plus 2%' - ...
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Like-for-like
FormalThe terminology for comparing apples with apples in the financial world. Comparing year on year financial performance means that data must be truly comparable. Data that distorts true compari...
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Liquidation
FormalThe process of winding up the affairs of a company or business by determining (or fixing) the liabilities and applying all assets as far as possible in the discharge of these liabilities. Sim...
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Liquidity
FormalCash is a liquid asset - and liquidity is a term that relates to the ability of all assets to be transformed into cash or cash equivalents at short notice. Used as a measure on businesses to ...
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Liquidity Ratio
FormalA statistical measure of a company’s ability to pay its bills as they fall due. The availability of cash and other ‘liquid’ assets to pay creditors on time.It includes:Current Assets / Liabil...
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Loaded Cost
FormalThe total cost of employing a member of staff including the base salary cost. In addition to salary, other hire costs include: Travel, IT, Healthcare, State Taxes, Insurance, Commission, Bonu...
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Loans
FormalA sum of money lent to another party in exchange for payment of interest and the promise of future repayment.Real-world ExampleA business takes out a $500,000 bank loan to fund an expansion, ...