LSP FB B2 - Unit 6: INTERNATIONAL FINANCE

Advance payment

Money paid before goods or services are received.

Advising bank

A bank that helps the seller by checking and passing on documents from the buyer's bank.

Assure

To promise that something will happen or be true.

Balance of payments

A record of all money coming into and going out of a country.

Bill of exchange

A document ordering someone to pay a specific amount at a specific time.

Bill of lading

A document showing what goods are being shipped and who owns them.

Capital account

A part of a country's financial records showing money coming in and going out for investments.

Clearance

Official permission to bring goods into or take goods out of a country.

Creditworthiness

How good someone or a company is at paying back money.

Current account

A part of a country's financial records showing trade, services, and money sent abroad.

Customs

The government department that checks goods coming in and going out of a country.

Default

Failure to pay back money you owe.

Discounted

Sold for a lower price.

Dispute

A serious disagreement.

Exchange rate

The price of one currency compared to another.

Fluctuate

To change (go up and down) regularly.

Freight

Goods that are transported, or the cost of transporting goods.

Inflows

Money coming into a country or company.

Invoice

A document showing what goods were sold, how much they cost, and how to pay.

Issuing bank

The buyer's bank that provides a letter of credit.

Letter of credit (LC)

A promise from a bank to pay the seller when conditions are met.

Minimal

Very small.

Mitigate

To make something less bad or less serious.

Open account

A payment method where the seller ships goods first and the buyer pays later.

Outflows

Money leaving a country or company.

Premises

The buildings and land that a company uses.

Recourse

The right to ask for payment or compensation if something goes wrong.

Sight draft

A document that requires payment when it is presented.

Strain

Pressure or difficulty.

Streamline

To make something faster, simpler, or more efficient.

Substandard

Below the expected or required quality.

Time draft

A document that requires payment at a future date.

Tradable

Something that can be bought and sold.

Trade deficit

When a country imports more than it exports.

Trade imbalances

When the amount a country imports and exports is not equal.

Trade surplus

When a country exports more than it imports.

Unload

To remove goods from a ship, truck, or plane.

Upfront

Paid or done before something happens.