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Banking and Finance

INSUFFICIENT FUNDS /ˌɪn səˈfɪʃ ənt fʌndz/

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.
Example Sentences:We have had to return the attached cheque to you due to insufficient funds in your personal account.
The cheque will bounce if you have insufficient funds in your account.
 

LETTER OF CREDIT /ˈbɛt ər ʌv ˈkrɛd ɪt/

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.
Example Sentences:We never release a shipment until a letter of credit has been issued.
The buyer applies to the bank for a letter of credit to be issued.
 

INVESTMENT BANKING /ɪnˈvɛst mənt ˈbæŋ kɪŋ/

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.
Example Sentences:What percentage of HSBC’s profits come from its investment banking division?
The bank’s investment banking division performed poorly last year due to the stock market crashes in South America.
 

LAUNDERED MONEY /ˈlɔn dərɜrd ˈmʌn i/

phrase

  • Laundered Money are funds sent through numerous bank accounts one after another in an attempt to hide the source of the money.
Example Sentences:The government has taken precautions to ensure that laundered money does not enter the country unnoticed.
All banks now have to inform the authorities if they suspect laundered money.
 

LIABILITIES /ˌlaɪ əˈbɪl ɪ teez/

noun

  • Liabilities include accounts payable (money you owe to suppliers), plus all current costs of doing business (mortgage payments, insurance, taxes, salaries, utilities).
Example Sentences:The business has liabilities of $2 million.
If our liabilities increase further, we’ll have to consider closing down the company.
 

NET WORTH /nɛt/ /wɜrθ/

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.
Example Sentences:He may appear to be rich, but his net worth is quite small, actually. He has 95% mortgages on most of his properties.
Bill Gates’ net worth increased dramatically over the past year due to the good performance of Microsoft’s shares.
 

LOAN /loʊn/

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.
Example Sentences:The bank gave me a loan of $3,000.
Can you loan me $10?
 

FLIGHT OF CAPITAL flaɪt ʌv kæpɪtl

Phrase

  • large-scale withdrawal of investment from a country.
Example Sentence: The recent flight of capital was caused by political unrest.
 

CURRENCY CONTROL kɜrənsi kənˈtroʊl

Noun

  • controlling the exchange of foreign money to protect domestic interests.
Example Sentence: The national bank is introducing currency controls to support industry.
 

RAISE CAPITAL reɪz kæpɪtl

Phrase

  • to try to get money for a business venture.
Example Sentence: The factory was sold to raise capital.
 

CAPITAL EXPENDITURE kæpɪtl ɪkˈspɛndɪtʃər

Noun

  • the cost of long-term improvements.
Example Sentence: They do not have enough cashflow to cover their capital expenditure.
 

LUCRATIVE lukrətɪv

Adjective

  • making a lot of money.
Example Sentence: He has signed a lucrative deal with a new record label.
 

BANKER’S DRAFT bæŋkərs dræft

Noun

  • a written promise from a bank to pay money, especially to another bank.
Example Sentence: We require a banker's draft to secure the deal.
 

BUYOUT baɪˌaʊt

Noun

  • when a person or group buys control of a company.
Example Sentence: A private equity firm has completed its £3.5bn buyout of the UK music group.
 

RAISE CAPITAL reɪz kæpɪtl

Verb

  • to try to get money for a business venture.
Example Sentence: The factory was sold to raise capital.
 
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