glossary on trade financing terms f

Français: Marchés financiers Español: Mercado financiero Financial Times FT index: London's stock exchange indicator.. The fixed level of the exchange rate is ensured by the Central Bank

Face value:

The value indicated on the face of a financial asset, e.g a US$100 Treasury Bill has a face value of US$100

Français: Valeur faciale

Espađol: Valor nominal

Factor cost:

An accounting method whereby the value of output is measured on the basis of the cost of the factors employed in its production, rather than with reference to its market price The production factors considered in the measurement usually include land, labour, capital and enterprise Some textbooks, however, consider only the first three factors

Français: Facteur cỏt

Espađol: Costo de los factores

Factoring:

A technique which allows businesses (including trading companies) to discount Accounts

receivable or other assets to obtain cash In factoring, the accounts receivable or other assets are sold at a discount on a daily, weekly or monthly basis to a factoring house Such an organization will assume title to the receivables or assets and will also bear all commercial and political risks

connected with the transaction, without the right of recourse to the exporter in the event of default

of the foreign buyer In practice, the factoring house purchases the trade credits of its client and handles the collection on the receivables on its own behalf Factoring may thus be a convenient option for firms without an effective collection department or which often discount their receivables.Factoring houses usually require that they handle a large percentage of an exporter's business They tend to work with short-term receivables (up to 180 days), linked mostly to sales of consumer goods

In general, factoring of foreign accounts receivable is less common than with domestic receivables Compare it with Forfaiting

Français: Affacturage

Espađol: Factorizaciĩn, descuento de facturas, gestiĩn de deudas con descuento, factoring

Factoring houses:

These are companies specialised in the purchase of receivables at a discounted price, usually about 2-4 % lower than their face value

Français: Sociétés d'affacturage

Español: Empresa de factorización

Français: Facteurs de production

Español: Factores de producción

Français: Fonds fédéraux

Español: Fondos federales

Federal funds market:

This is the market within which several hundred US banks borrow or lend Federal funds, allowing banks temporarily short of reserves at the Federal Reserve Banks to borrow from banks which have excess reserves.

Français: Marché des fonds fédéraux

Español: Mercado de fondos federales

Federal funds rate:

The rate at which US banks will lend each other their surplus of reserves held with the Federal Reserve Banks The Fed Funds rate, as it is called, often indicates the direction in which U.S interest rates will move

Français: Taux des fonds fédéraux

Español: Tasa de los fondos federales, tipo de los fondos federales

Federal Reserve System:

Usually referred to as the Fed, this is the Central Bank of the United States It is governed by the Federal Reserve Board located in Washington, D.C and includes 12 district Federal Reserve Banks.Français: Système de la Réserve Fédérale

Español: Sistema de la Reserva Federal

Fees:

Additional charges to be paid to lenders Sometimes referred to as Management fee, Negotiation fee or Agency fee

Français: Honoraires, Commissions

Español: Honorarios, derechos

F.I.:

See Free In

Français: Dépôts fiduciaires

Español: Depósito fiduciario, depósito sin garantía

Final delivery:

A term indicating the date on which the final delivery is carried out

Français: Livraison finale

Español: Entrega final

Final dividend:

The dividend paid out by a corporation at the end of the year (annual dividend) after quarterly, annual or other interim dividends have been distributed during the year

bi-Français: Dividende final

Español: Dividendo complementario

Final maturity:

The due date for the final repayment of the principal

Français: Echéance finale

Español: Vencimiento final

Français: Effet financier

Español: Letra de cambio financiera

Financed portion:

The portion of the total contract value or invoice after deduction of the down payments It serves as the basis for the calculation of the guarantee/insurance coverage, the risk retention and the

guarantee/insurance fees

Français: Part financée

Español: Porción financiada

Financial engineering:

the process of creating, combining or dividing different financial instruments in order to achieve a specific financial objective within certain tax and legal constraints

Français: Ingénierie financière

Español: Técnicas financieras

Financial Futures:

See futures

Français: Contrats financiers à terme

Español: Financial futures

Financial loan; medium-term financing:

A bank loan granted to domestic or foreign borrowers for a fixed amount and a fixed term, without linking the use of the loan to a specific commercial transaction Compare with Export financing credit

Français: Prêt financier, Financement à moyen terme

Español: Crédito financiero

Financial markets:

A general term indicating the wide array of markets where people buy and sell money and financial instruments Financial markets include markets in currencies, bonds, Treasury bills, equities, financialfutures, options, bank deposits,commercial paper, etc

Français: Marchés financiers

Español: Mercado financiero

Financial Times (FT) index:

London's stock exchange indicator The index is published daily in the Financial Times newspaper Themain FT index is the "industrial ordinary", which covers the movements in the shares of the thirty largest industrial companies A more widely based index has been developed by the Financial Times and the London Stock Exchange which is known as the Footsie, standing for FT-SE See also Dow Jones Index and Nikkei Index

Français: Indice du Financial Times

Español: Indice del Financial Times

Obtaining or supplying money or credit for an investment or trade purpose

Français: Financement

Español: Financiación, financiamiento

Financing of month-end closing:

This refers to borrowing in order to bridge temporary liquidity shortages at the end of the month.Français: Financement de bouclement de fin de mois

Español: Financiación para el cierre mensual

F.I.O.:

See Free In and Out

Français: F.I.O

Español: Franco de gastos de carga y descarga

First in, first out (FIFO):

An accounting method for evaluating a company's inventories (stocks) As the term indicates, FIFO assumes that stocked items are used, or sold from stock, in the order in which they arrived The LIFO method (Last in, first out) assumes that the newest items are used or are sold first Using the FIFO method stocks are valued at their original cost while LIFO values all stocks at current price As a result, FIFO tends to show a lower level of profits than LIFO because it excludes the gains from stock appreciation

Français: 1er entré -1er sorti (FIFO)

Español: (Método de) Primera entrada, primera salida; primero en entrar, primero en salir; PEPS; salida en el orden de adquisición; salida en el orden de entrada

First loss:

In case of damage, this is the amount which has to be borne by the insured and absorbed before any percentage refund payment is calculated Also called a deductible.

Français: 1ère Perte/Franchise

Español: Primer riesgo

First of exchange:

The original of a draft drawn in original and duplicate

Français: Premier de l'effet

Español: Primera de cambio

Fixed advance:

This a loan which must be repaid at an agreed due date (as a rule in 6 weeks, 3 months or 6 months)

or when called It is listed in the bank’s balance sheet under the fixed loans and advances heading.Français: Avance fixe

Español: Préstamo fijo

Fixed assets:

A term indicating tangible assets such as real estate, buildings, land, plant and machinery, bought by the firm for long-term use rather than for resale or immediate consumption Increasingly, fixed assetsinclude intangible assets such as patents, trademarks and customer recognition Fixed assets are retained in the business for long periods and a portion of their original cost will be written off annually against profits for amortization to reflect their diminishing value over time In the firm’s balance sheet fixed assets are therefore usually shown at cost, less depreciation charged to date It should however be noted that certain fixed assets, such as property, tend to appreciate in value The figures on the balance sheet thus need to be periodically revalued to keep in line with market values.Français: Immobilisations

Español: Activos fijos

Fixed charge:

A security or collateral given by a borrower to a lender, in the form of a claim on specific assets of theborrower should he fail to pay If the borrower goes bankrupt, only these specific assets may be taken over by the lender Compare with Floating charge.

Français: Droit de gage fixe, limité

Espađol: Cargo fijo

Fixed costs:

Costs which are fixed in total for a given period of time and for given production levels, such as factory rents or staff on contracts They cannot be altered in the short-term and are therefore a constraint on the immediate flexibility of the firm

Français: Cỏts fixes

Espađol: Costos fijos, gastos fijos

Fixed-date bill:

A bill of Exchange which becomes due and payable at a specified date after the issue date Also known as after-sight bill, it is frequently employed in international transactions

Français: Effet à date fixe

Espađol: Letra con fecha fija

Fixed exchange rate:

A currency’s exchange rate which is officially kept fixed at a specified level over time or is allowed to float within a permitted margin of fluctuation The fixed level of the exchange rate is ensured by the Central Bank through purchases and sales of foreign reserves on the foreign exchange markets.Français: Taux de change fixe

Espađol: Tipo de cambio fijo

Fixed exchange rate system:

A system where the exchange rates of the participating currencies are tied to (i.e fixed in terms of) some common standard, such as gold, another country’s currency, a basket of currencies, etc Limited fluctuations from such common standards may be allowed, leading to an adjustable peg-rate system Examples of fixed exchange rate systems include the Bretton Woods agreement (1945-1973),whereby the U.S tied the dollar to gold, with other countries pegging their currencies to the dollar The European Monetary System is another example, within which the participants' currencies were allowed to float within a fluctuation margin fixed around the relative ECU rate.

Français: Système de taux de change fixe

Español: Sistema de tipo de cambio fijo

Fixed-interest financial securities:

Any financial security which has a predetermined fixed interest rate attached to its par value (such

as Treasury bills, bonds, debentures, notes and preference shares etc.) The borrower of a interest financial security must pay interest at the set rate for its entire maturity For example, a debenture with a par value of £100 at 5% will pay out a fixed rate of interest of £5 per annum until maturity

fixed-Français: Titres financiers à taux d'intérêt fixe

Español: Valor de renta fija

Fixed price:

Usually used in the same sense as lump sum, but referring to goods rather than services It is a fixed sum, agreed at the signature of the contract, to be paid to the seller for the goods traded

Français: Prix fixe

Español: Precio fijo

Fixed rate loan/lending:

A term loan for which the interest rate has been set at an agreed fixed rate for the entire life of the loan

Français: Prêt à taux fixe / financement

Español: Préstamo con tipo de interés fijo

Français: Evasion de capital

Español: Fuga de capitales

Flight to quality:

A process whereby investors move towards safer government bonds during periods of economic uncertainty

Français: Refuge dans la qualité

Español: Desplazamiento hacia las emisiones de mayor calidad

Float:

(1) The issue of a security (equity or loan stock) The term may also refer to the number of shares actively tradable in the market, excluding shares held by major stakeholders who have a binding agreement not to sell

(2) Flexible foreign exchange rates, with no intervention by the authorities in the foreign exchange market (see also clean floating)

Français: Droit de gage global

Español: Cargo flotante

Floating debt:

Short-term, non-funded and non-consolidated debt of a public authority Opposite: consolidated (funded) debt

Français: Dette flottante

Español: Deuda flotante

Floating (flexible) exchange rate:

The situation when a currency value is determined by trading on the foreign exchange markets and isallowed to move or "float" freely, without any, or minimal, Central Bank intervention It is sometimes referred to as clean float, as opposed to a dirty float when the Central Bank intervenes to restrict exchange rate fluctuations Opposite: Fixed exchange rates

Français: Taux de change flottant (flexible)

Español: Tipo de cambio flotante, tipo de cambio flexible

Floating rate:

An interest rate based on a variable interest rate benchmark, such as a specific-maturity Treasury bill yield A fixed margin is usually added to such a benchmark

Français: Taux variable

Español: Tipo flotante, tasa flotante, tipo variable

Floating Rate Note (FRN):

A short-term bond issued (typically on the Euromarkets) with a variable (floating) coupon or interest rate, which varies in line with a reference short-term market interest rate (usually, the LIBOR or primerate) Adjustments to the bond’s rates are made at intervals of three or six months to account for changes in the reference rate, and interest is usually paid twice a year to the note holder Popular with international banks, FRNs contrast with conventional bonds on which the coupon rate is fixed until maturity Borrowers prefer FRNs if they expect a fall in market interests rates, or if they have already issued a lot of fixed-rate debt and wish to diversify their debts See also Capped FRNs

Français: Obligation à taux variable

Español: Bono de interés flotante, bono de interés variable

Floor:

(1) The place where trading in a stock exchange actually takes place

(2) The minimum rate of interest on a floating rate note

Français: Corbeille ou Plancher

Español: Bono con interés flotante mínimo

Floored FRN/Floor:

A Floating rate note with a minimum interest rate

Français: FRN à taux minimum

Español: Floored FRN

F.O.:

See Free Out

Footsie (FT-SE 100 stock index):

Introduced in 1994 by the Financial Times and the London Stock Exchange, it is a computerised financial index of 100 major British companies

Français: Footsie Indice FT-SE des 100 actions

Español: Indice de la bolsa de Londres y del Financial Times

Force majeure:

A standard clause (for example in marine contracts) which exempts the parties for non-fulfilment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, war or other events over which none of the parties has control or influence (Act of God)

Français: Force majeure

Español: Cláusula de fuerza mayor

Forced sale of collaterals:

The forced sale of the assets pledged as security for a loan if the credit utilised exceeds the value of the pledged collaterals, or if the borrower has defaulted in repaying the principal or paying the due interest

Français: Vente forcée des actifs mis en gage

Español: Venta forzada de garantías

Foreign assets:

Credit balances or claims towards foreign debtors Foreign assets may for instance take the form of loans granted by the banks to customers abroad, holdings in foreign enterprises, direct investments abroad, foreign real estate etc Opposite: Foreign liabilities

Français: Actifs étrangers

Español: Activos en el exterior, activos exteriores

Foreign bond:

A bond issued and sold outside the country of the borrower in the currency of the country of issue For example, a Swiss franc bond issued by an American company and sold in Switzerland

Opposite: Domestic bond

Français: Obligation étrangère

Español: Bono extranjero, obligación extranjera

percentage of the total contract, or in proportion to the domestic content of the contract

Français: Contenu étranger

Español: Contenido extranjero

Foreign Credit Insurance Association (FCIA):

An agency of the Export-Import Bank (Eximbank) of the United States offering comprehensive insurance cover against political and commercial risks on export receivables FCIA was founded in

1961 as a partnership between a group of private insurance companies and Eximbank While the FCIA directly underwrites commercial credit risks, Eximbank is responsible for the political risks and