define explain l

L

Lease – see Finance Lease.

Legal entity – An individual or group that may be held legally responsible.

Liability – see Debt.

Lien – The right to use property to secure a loan.

Liquidity – A measure of the speed and ease with which an asset can be converted into capital with minimal loss.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Loan – Money lent for a specified period. The loan must usually be repaid with interest.

Loan agreement – A contract between lender and borrower which determines the terms of the loan.

Loan approval fee – A fee payable upon the lenders approval of a loan.

Loan maintenance fee – Ongoing management fees throughout the loan period, usually charged on a monthly basis.

Low documentation loan – Generally directed at self-employed borrowers who may not have sufficient documentation to apply for a standard loan.

Lump sum payment – A one-off contribution to loan repayment that is additional to regular payments.

Luxury car – A vehicle whose purchase price exceeds the $57,009 'luxury tax limit' set down by the ATO.