In This Section
Letters of Credit (different types) 
Important assurances or guarantees to sellers that they will be paid for a large transaction, particularly with international exchanges. It is a document issued by a third party that guarantees payment for goods or services when the seller provides acceptable documentation. Letters of credit are usually issued by banks or other financial institutions, but some creditworthy financial services companies, like insurance companies or mutual funds, might issue letters of credit under certain circumstances.
Letter of Credit
A letter issued by one bank to another bank that guarantees a correct and timely payment will be made to the recipient bank's client. In the event that the issuing bank's customer can't make the payment, the issuing bank will make the payment.
Lender Fatigue
When a lender becomes unsatisfied with the relationship that it has with one of it's borrowers, possibly due to financial underperformance, untimely payments, or other financial transgressions.
Left Lead
The lender mandated with structuring and underwriting the credit facility, as well as syndicating the deal. The left lead usually serves as an intermediary between the company and all of the participants in the syndicate as well.
Lease
An agreement entered by two parties, where one party (the lessor) allows the other party (the lessee) to use certain property in return for a periodic payment.
LCM Reserve
An LCM Reserve (lower of cost or market) is an amount reserved for when the market price for a company's inventory drops below the cost recorded on it's books.
Landlords' Lien
A lien on rented property for the satisfaction of unpaid rent.
Landlord Waiver
Most often a Landlord Waiver is used when inventory or equipment lenders are secured by collateral located in premises leased by the borrower.
Landed Cost
Landed cost is the total cost of a product or shipment once it has arrived at a buyer's doorstep. The landed cost includes the original price of the product, transportation fees (both inland and ocean), customs, duties, taxes, tariffs, insurance, currency conversion, crating, handling and payment.
Kiting
A form of check fraud whereby a check may be drawn against uncollected or insufficient funds with the intention of creating a false balance in the account by taking advantage of the time laps required for collection. Kiting also occurs when a securities firms fails to deliver securities of buy and sell transactions in a timely manner.
Junior Lien
A lien, that is subordinate in rights, placed on property after a previous lien has been properly perfected on that same property. Usually a junior lien is paid after earlier priority perfected liens have been satisfied.
Joint Lead Arranger
A bank or other financial firm that assists the Lead Arranger in the structuring and underwriting of a syndicated loan for major financing. Typically the Joint Lead Arranger also provides a larger commitment than the other participants in a transaction and will help assign parts of the issue to other underwriters for placement.
ISDA
The International Swaps and Derivatives Association. An organization for those who participate in the market of over-the-counter derivatives.
Irrevocable Letter of Credit
A form of letter of credit that can't be cancelled nor in any way modified, unless all business parties agree to the proposed cancellation or modification.
Involuntary Bankruptcy
When a person/business does not consent to file bankruptcy, they may be forced to declare bankruptcy through certain legal petitions made by its creditors.
Invoice Date Aging
An A/R aging schedule that categorizes the status of a company's A/R based on the length of the time that the invoice has been outstanding, instead of the due date on the invoice.
Invoice
An invoice is a commercial document that itemizes a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal, and provides information on the available methods of payment. An invoice is also known as a bill or sales invoice.
Investment Thesis
The analysis performed by a buyer to assess a potential acquisition against an established set of investment criteria. Usually a formal written document or slide presentation to the buyer's investment committee for deal approval.
Intercompany Receivables
Receivable from an affiliate. An affiliate is a company that is associated with, or effectively controlled by, our Borrower. The affiliation may be through direct ownership, common ownership, interlocking or overlapping directorship or management, or even a family relationship.
Hypothecate
To pledge property as security or collateral for a debt. Typically, neither the possession nor the title but only the right to sell an asset or property passes on to the creditor or lender (called a grantee).