A document which combines both an acceptance certificate and a lease schedule.
Acknowledgement of delivery
A document (often part of a lease schedule) upon which the Lessee confirms they have received the equipment to be leased.
Advance lease payments
Lease payments made from the Lessee to the Lessor at the start of the lease, often the first and last lease payment.
An agreement under which the Lessee may buy specified leased equipment from the Lessor at a pre-agreed price at the end of the lease term.
A leasing company that is tied to a particular equipment vendor.
The process of setting the terms of different Lease Schedules so that they all expire at the same time, often used when a single installation of equipment is comprised of multiple lease schedules.
A service which includes safely disconnecting equipment, packing it and transporting it. Typically used by the Lessee at the end of the lease term in order to return the equipment to the Lessor.
An amount paid by the Lessee to the Lessor at the inception of a Lease to secure equipment or as security against default.
The decline in value of equipment over its useful life.
A certain interest rate that is used to bring a future payment or series of future payments to their present value in order to state them in today’s dollars.
An interest rate used to compare the cost of a lease over the term to other forms of finance.
An agreement that allows for part payments or progress payments to be made from the Lessor to the Vendor, often used when delivery or installation of equipment is happening over a long period of time. Once a certain point is reached (such as a specific date or the delivery of all equipment) the equipment costs along with any fees and charges incurred through the escrow are wrapped up in a lease schedule and the Lessee commences making lease payments.
Charges for services provided including the preparation of lease documents (documentation fees) and other services such as decommissioning.
A lease where the risks of ownership transfer to the Lessee. The Lessee guarantees to pay the Lessor the residual value at the end of the lease term. Typically the Lessee will purchase the equipment from the Lessor for the residual value at the end of the lease term.
Goods and services tax. The Lessor will pay the GST on the equipment when it is purchased, the Lessee will pay GST on any lease payments they make.
The third party which provides a guarantee.
An agreement under which a third party agrees to guarantee the lease payments from the Lessee to the Lessor and will be held liable for those payments were the Lessee to default.
A contract between a Lessee and a Lessor that details the equipment to be leased, over what term and at what charge.
Money paid by the Lessee to the Lessor in return for the use of the equipment.
A document that describes in detail the equipment being leased, including the equipment description, lease term and lease payments.
The period of time over which the Lessee will use and pay rent for the equipment typically measured in months or years.
The user of the equipment that is the subject of a lease agreement.
The company that purchases and owns the equipment, leasing it to a company to use.
Master Rental Facility / Master Lease Facility
An agreement which sets out the terms and conditions which will apply to multiple lease schedule’s, this allows a Lessee to enter into new leases with certainty that they will all work in the same way.
OCM™ (Online Contract Management)
Alleasing’s web based system that allows the Lessee to manage their leased equipment and lease schedules.
A lease where the risks of ownership remain with the Lessor. The Lessor invests a residual value in the equipment, reducing the lease payments for the Lessee. The Lessor is responsible for recovering this residual investment at the end of the lease term.
A period of time where no lease payments are made by the Lessee.
PPSA / PPSR
Personal Properties Securities Act / Personal Properties Securities Register – The legislation and mechanism that allows someone with an interest secured by equipment (e.g. the Lessor) to register that interest and ensure that no other party lends money secured by the same equipment.
A way of expressing an amount to be received over a period of time, or at a future time, in a dollar value today. This is calculated using a discount rate.
An agreement under which the Lessor may sell specified leased equipment to the Lessee at a pre-agreed price at the end of the lease term.
An option to extend or “renew” a Lease over a new lease term with pre-agreed lease payments.
See “Lease Payments”.
Sale and Rent-Back / Sale and Lease-Back
An agreement under which the Lessor buys equipment from the Lessee and then leases it back to them as though it had been supplied by a third party.
Tailored rental payments.
An underlying interest rate at which financial organisations exchange money, often used as a benchmark against which rental payments are set.
The period of time for which equipment is expected to function, fulfilling the purpose for which it was designed.
The company that provides the equipment to be leased.