Business Word/Phrase of the Day

phrase

• department within a company responsible for customer care, including complaints

phrase

• Formal contract by which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties. An invoice, for example, is a contract of sale. Also called agreement of sale, contract for sale, sale agreement, or sale contract.

phrase

• The available balance is the portion of a customer's bank account balance on which the bank has placed no restrictions, making it available for immediate withdrawals.

phrase

• The Ledger Balance is the balance in a bank account at the beginning of each day, also known as the current balance. It includes all deposits and withdrawals that were posted from the previous night, whether or not funds have been collected.

phrase

• If a person or company goes bankrupt, they are unable to pay what you owe, and have control of your financial matters given, by a court of law, to a person who sells your property to pay your debts.

adjective

• A person or company becomes insolvent if they are unable to pay their debts when they are due to be paid.

phrase

• Insufficient Funds is a term indicating that a bank account balance is not enough to cover a cheque that has been written and presented for payment.

phrase

• A Letter of Credit or L/C is a binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. Basically, a letter of credit gives the seller reassurance that he will receive the payment for the goods. In order for the payment to occur, the seller has to present the bank with the necessary shipping documents confirming the delivery of goods within a given time frame. It is often used in international trade to eliminate risks such as unfamiliarity with the foreign country, customs, or political instability.

phrase

• Investment Banking is a division of banking which includes business entities dealing with creation of capital for other companies. In addition to acting as agents or underwriters for companies in the process of issuing securities, investment banks also advise companies on matters related to the issue and placement of stock.

phrase

• Laundered Money are funds sent through numerous bank accounts one after another in an attempt to hide the source of the money.

noun

• Liabilities include accounts payable (money you owe to suppliers), plus all current costs of doing business (mortgage payments, insurance, taxes, salaries, utilities).

phrase

• Net Worth is the value of a person’s assets, including cash, minus total liabilities. It is often used as an underwriting guideline to indicate an individual's creditworthiness and financial strength.

noun or verb

• A loan is a written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender) to a borrower who promises to return it according to the terms of the agreement, usually with interest for its use.
• If you loan something, such as money, to someone, you lend it to them. You expect them to return it later to you.

Noun

• in an insurance contract, a person who is not the insurance company or the insured person, but who will receive money if they suffer loss or damage caused by the insured person.

Noun

• a person or company who gives advice about and sells insurance for an insurance company or number of insurance companies.