A/R
Account Receivables
Acceptance Certificate
See Certificate of Acceptance.
Acquisition Cost
For new equipment, the acquisition cost corresponds to the aggregate of all invoices paid by HPFS, as well as potential interest effects on the value of such payments.
For used equipment, the acquisition cost corresponds to the Asset Management Department's quoted market value of the leased equipment.
Addendum
A document that is attached to and made part of the lease agreement. ^
Add-On
The transaction by which a lessee can add additional assets to their lease schedule during the term (usually coterminous), resulting in an increased monthly lease payment for the remainder of the lease term.
AP
Asia Pacific region, including Japan
Approved Pricing Guidelines
The sales force receives approved pricing guidelines each month. The interest margins presented are the minimum acceptable spreads. The residual values shown are the maximum acceptable values. Each sales person is responsible for developing quotations to end-user customers that are in line with the pricing guidelines.
Basis points
Generally used with reference to interest rates, a basis point equals 1% of 1% (e.g., 100 Basis Points = 1%). ^
Blended Residual Value
Blended residuals are the use of one or more different residuals each individually calculated and then added together.
Blind Discount
A discount given to the lessor by the supplier (reseller) without the knowledge of the lessee (customer).
BOP
Back Office Provider, a partner that the financing organization uses for a specific program – or to operate the back office function for a specific country.
Brio
HPFS standard reporting tool to extract data from ILS, Magellan and data warehouses. ^
Bundled Lease
A lease that includes a variety of additional services including maintenance, insurance, and property taxes that are paid for by the lessor and the cost of which is built into the lease payment.
Buy-Out
Early purchase of the leased equipment before lease end (end of term).
Buy / Sell
A re-marketing activity whereby HPFS purchases equipment for the onward sale, at a margin, to customers.
CAMEO
HPFS Asset Management center in EMEA located in Nijmegen, the Netherlands. ^
Carry Over
Carry Over is due rental amounts and any other agreed customer related expenses (such as customer old equipment disposal costs) that have been carried over to a new lease.
CBM
Client Business Manager
Certificate of Acceptance
Also known as Delivery Acceptance. A document whereby the lessee acknowledges that the leased equipment has been delivered to him/her, is acceptable, and has been manufactured or constructed according to specifications.
COD
Computing on Demand. Overarching Program name in Compaq for any Utility Program. ^
Colleague
A term used to refer to HPFS employees.
Commencement Date
Start date of the lease.
Connect Rate
Penetration Rate into parent company sales.
Cost of Funds (COF)
The cost of interest paid to borrow money to finance the lease: Treasury Cost. ^
Coterminous
The term used to describe two or more leases and/or assets that terminates on the same date.
Cross Border Lease
Lease transaction between lessor and lessee in which the lessor has no physical presence in the country of the lessee or where the lessee's equipment is located.
CSG
HP Customer Solutions Group, includes Sales and parts of HP services organization.
Current Fair Market Value
The current Fair Market Value (CFMV) of an item or items of equipment or other property. See Fair Market Value. ^
D&A
Delivery & Acceptance
D&R
Default & Recovery
Data Warehouse
HPFS repository data
Deal margin or Transaction
The margin is the difference between all revenues received and all related costs of the transaction incurred. ^
Deemed acceptance
Automatic acceptance of equipment delivery by the customer.
Delivery Acceptance
See Certificate of Acceptance.
Direct Deal
A deal where the goods are supplied directly from HP.
Early Termination
Early termination is where a lease is terminated prior to the firm term. ^
Economic Life
The estimated remaining period during which the property is expected to be economically usable by one or more users, with normal repairs and maintenance, for the purpose for which it was intended at the inception of the lease. Also called useful life.
ELT
Extended Leadership Team. HPFS leadership group comprised of the Global Business Unit leader, his/her direct reports and their direct reports.
EMEA
Europe, Middle East, Africa region
EMR
Term used in reference to HP Equipment Management and Remarketing function<. ^/dd>
End of Lease
The end of the firm term rent period, excluding rent-free periods.
Enterprise Customers
Large customers They buy goods and services for more than 1 M USD per annum from HP.
EOT
End of Term
Equipment Schedule
See Schedule ^
ESC
Enterprise Standard Cost: A world-wide standard cost for products manufactured by HP.
Expired lease continuation
This is where the lease is still in operation beyond the firm term and no customer termination notice has been received.
Fair Market Value (FMV)
Fair market value is the price that would be paid for an item of equipment in an arm's length transaction between an informed and willing buyer and an informed and willing seller. Could be based on a wholesale or retail sale.
FAM
Financial Area Manager. HPFS Territory Salesperson. ^
Firm Term
The firm term is the initial, contractually agreed term of the lease as stated in the contract.
Fourth Shift
HPFS systems for Asset Management Business in EMEA and North America.
Future Value
The value of money based on an interest rate (typically the published interest rate) at some future point in time (e.g. the end of the lease).
Geo
Geography, e.g. EMEA ^
Global Accounts Segment
Global customers segment;represent multi country deals, Services led transactions (Utility based deals) and high yield opportunities.
GLT
Global Leadership Team. The senior global leadership team comprised of the GBU leader and his/her direct reports.
GMLFA
Global Master Lease and Finance Agreement, a Master Lease with country addendum. HPFS contract.
GTM
Go To Market ^
Guaranteed Buy Backs
Guaranteed buy backs is a situation where a leasing company guarantees to buy non-leased equipment from a customer for a set amount at a set time period(s).
Hell-or-High Water Clause
A clause in a lease that reiterates the unconditional obligation of the lessee to pay rent for the entire term of the lease, regardless of any event affecting the equipment or any change in the circumstance of the lessee.
High Yield
Structured financed deals
HPFO
HP Financial Operations ^
HPFS
HP Financial Services
HPIB
HP International Bank (the Irish bank)
IDC
Initial Direct Costs. These are costs incurred by the lessor that are directly associated with negotiating and consummating a lease.
Implicit Lease
An internal agreement between HPFS and HP to account for the hardware and software components of service contracts that transfer the use of property, plant or equipment. ^
In place/off-lease sale
This is where the equipment on lease is sold to the lessee.
Indexing
Generally, indexing refers to lease rate quotes or lease rates that are subject to adjustment to reflect prevailing interest rate changes based on some specified formula. Quotes are added to a 45-day clause during which the quoted lease rates will be maintained by HPFS, If the customer elects to take up the quote after 45 days have elapsed then the current COF must be used in computing the lessee's rental.
Indirect Deal
A lease whose products are supplied by third parties.
Interest Rates
Is analogous to the annual percentage rate (APR) that a bank would quote a borrower on a loan. The interest rate represents a constant periodic earnings percentage that is applied to a declining principal balance throughout the term of the lease. ^
Interim Rent
An extra charge that is applied for the time period between when the equipment is installed and the lease starts, i.e. the first day of the month following the installation date.
IPG
Imaging and Printing Group, one of the new HP's global business units.
IT
Invoice Type, also refers to Information Technology.
J
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K
 
LA
Latin America region, including Puerto Rico. ^
Lease Payment
The periodic charge a lessee pays to a lessor over a fixed period of time for use of the leased equipment. Also called rental payment.
Lease Rate Factor (LRF)
The periodic lease or rental payment, expressed as a percentage (or decimal equivalent) of equipment cost. The factor is used to calculate payments given the cost of the equipment (e.g. a factor of .0360 on an equipment cost of $5,000 requires a monthly payment of .0360 x $5,000 = $180.) ^
Lease Renewal
HPFS customer may elect to extend the term of their contract for an additional period of time, sometimes at a reduced payment amount.
Lease Type
There are two main types of lease: Operating and Finance. An operating lease is a lease whereby the lessor will own the equipment at the end of the lease term. A finance lease is one where the equipment becomes the lessee's property on payment of the last rental amount. ^
Lifecycle Management
Lifecycle Management is a set of financial asset services that includes residual valuation, portfolio management and Remarketing. The product catalogue and AssetEdge asset tracking service are also included in lifecycle management.
Master Lease
A continuing HPFS agreement that provides for property to be subject to the terms of a single lease over a period of time. Schedules are added to reflect additional equipment under the same basic terms and conditions without having to negotiate a new lease contract.
MLA
Master Lease agreement
MOD
Mobility on Demand. Utility program for Handhelds (US only). ^
MPS
Managed Print Services (printing solution which allows the customer to transfer ownership of hardcopy assets and support responsibility for their hardcopy environment to HP).
NA
North America or North America Region
NBV
Net Book Value ^
New Equipment
New equipment is equipment which:
  1. has not been unpacked
  2. is still currently on the Manufacturers pricing lists,
  3. has not been supplied longer than 6 six weeks prior to the rent start date.
P.O.
Purchase Order
PA
Print Advantage (printing solution that offers to the customer a service that includes equipment financing, support services and toner supplies). ^
Paperless leasing
HPFS marketing name for online lease origination and documentation for resellers and SMB B2B customers, the e-enabled way of interacting with SMB customers and resellers.
Part Termination
Part termination is where only part of the equipment on the lease has been terminated and the balance continues (or is extended) to be leased.
Payout
The total value of the rentals as a Present Value when the transaction rent starts as a percentage of the acquisition cost. ^
Phoenix
HPFS Front-end system for put-through lease processing & invoicing.
PMC
Performance Management Coach. Typically a colleague's direct supervisor.
Portfolio Management
A process that impacts all aspects of the lease from before the lease starts (setting residuals) to the time that lease is terminated and the asset is sold. PM is focused on three major areas; 1) maximizing return on assets, 2) review and set residuals, and 3) using the portfolio as a lead generator to renew leases with existing customers.
Present Value
The current value of money (as opposed to the value of this money at some point in the future). ^
Pricing Policy
It includes, general guidelines for pricing per country (minimum tickets per country, minimum ticket for standard deals per country, minimum ticket for customized deals per country, terms,) and specific guidelines for marketing programs (example: Print Advantage). It is published every month.
PSG
Personal Systems Group, one of HP's global business units responsible for access devices.
Purchase - $1.00 Option (dollar out)
Permits purchase of the equipment at the end of the lease term for $1.00.
Purchase – Prepaid
Permits prepayment of any purchase option at, or before lease inception. ^
Purchase
An option to purchase leased property at the end of the lease term for a specified.
Purchase Option - Fixed Price
Permits the purchase of the equipment at the end of the lease term for a fixed percentage of its original cost.
Purchase Option – Fair Market Value
Permits purchase of the equipment at the end of the lease term for its fair market value at that time.
Region
A geographic area: Europe, Middle East, Africa (EMEA), Latin America, Asia Pacific (AP), North America (NA) ^
Renewal of Leases
Case in which the lease is still in operation beyond the firm term and either the customer or HPFS wishes to re-negotiate the transaction.
Rent Start
When the first rent starts accruing, excluding rent-free periods.
Rental
Term sometimes used to refer to an operating lease. Also refers to lease payments.
Residual Value
Residual value (RV) is the Future Value amount of money that the lessor will invest in a customer's equipment. It corresponds to the book value that the lessor depreciates hardware down to during the lease term, typically based on an estimate of its salvage value. ^
ROE
Return on equity: a pricing term.
SAF
Sales Assistance Fee. A term used for commissions paid to HPFS or HP sales people.
Sale-Leaseback
This is the sale by the customer to HPFS of its defined assets for an agreed sum, and the implicit agreement to lease those assets from HPFS.
Sales-type Lease
Term sometimes used to refer to a finance lease. ^
Schedule
A document that describes in detail the equipment being leased. It may also state the lease term, commencement date, repayment schedule and location of the equipment.
Schedule of Authorizations
Global HPFS the document setting forth the individuals or group of individuals with authority to approve or take various actions (e.g., approve credit requests, make pricing decisions, sign contracts, fund transactions).
Segments
HPFS Business marketing segments: Global accounts, Enterprise, SMB and Consumer.
Services
HP Services GLobal Business Unit or services purchased by customer as part of an equipment deal. ^
Shared Service Center
HPFS EMEA headquarters in Dublin.
Small (in SMB)
Small Customers
SMB
Customers Consists of Small and Medium businesses.
SOD
Storage on Demand. ^
Soft Costs
Refers to maintenance, software, insurance or other similar costs that are not hardware-related.
SSC
See Shared Service Center.
Step Lease
A lease where the monthly or quarterly payment either increases (step-up) or decreases (step-down) to a pre-determined amount over the term of the lease.
Supertrump
HPFS pricing tool for ROE calculation. ^
TAT
Turn around Time
Technology Refresh
Technology refresh is the exchange of some or all of the equipment currently on lease with new replacement equipment, which is placed on the same lease. Normally that lease is then extended a set period and commonly the rentals remain the same.
T-FAM
Territory Financial Area Manager.
Tiers
A tier 1 manufacturer is a perceived market leader. ^
Transaction Related Expenses
Transaction related expenses are extraordinary expenses, which are incurred due to non-standard terms and conditions agreed in a deal.
TSG
Technology Services Group (merge HP Services and parts of ESG)
TVS
Technology Value Solutions. HPFS Remarketing and asset recovery services.
UBS
Utility Billing System ^
Useful Life
See Economic Life
Watch list
Report generated by Collections where customers over 90 are shown
WW
World Wide
^