Glossary
cost for the lessee resulting from such a
termination is spelled out in the termination
schedule.
Through-put Contract A contract where the
obligors must pay for the shipment of
specific quantities of products, such as oil or
gas, over specific periods via a pipeline.
Time Draft A draft that is payable at a specified
time in the future.
Tolling Contract A contract in which raw
materials or other input supplies are
provided at no cost to a project that is paid
for processing them.
Trade Acceptance/Bill A bill of exchange used
in international trade.
Trade Credit Credit extended by the company
selling the goods to another company to
enable it to buy goods/services from the
party that is extending the credit.
Trade/Commercial Letter of Credit A promise
document issued by a bank to a third party
to make a payment on behalf of a customer
in accordance with specified conditions.
Frequently used in international trade.
Transferable Credit Funds available via a letter
of credit which can be transferred from one
beneficiary to another.
Uncommitted Line of Credit A credit line that
carries no obligation for the bank to provide
funds at the borrower’s request and that can
be cancelled without notification.
Uniform Customs and Practice for
Documentary Credits An International
Chamber of Commerce (ICC) publication
listing the regulations for letters of credit that
are required to be subject to its rules (often
known as ‘UCP 600’).
Uniform Rules for Collections Guidelines
issued by the International Chamber of
Commerce (ICC) that outline standard
documentary collection practices.Uniform Rules for Contract
Guarantees Guidelines issued by the
International Chamber of Commerce (ICC)
that aim to provide consistency of practice
and a fair balance between the interested
parties in the use of contract guarantees.
Upstream Guarantee Guarantee issued by a
company, usually an operating subsidiary, to
support its parent company’s obligations.
Usance The length of time allowed for a letter
of credit or negotiable instrument to be paid.
Usance/Time Draft A draft that is payable after
a set period of time.
Value Date The day on which a transaction is
settled, the payer is debited and the payee
credited. These days may differ if there is
float.
Variable Rate An interest rate that changes
periodically in line with market rates.
Vendor Lease A contractual agreement
between a vendor of equipment and
a leasing company where the latter
undertakes to lease the vendor’s assets in
order to promote the latter’s sales. This type
of arrangement is comparable to a lease
financed via captive finance companies. Also
known as lease asset servicing.
Waybill A document similar to a bill of lading
prepared by a transportation line at the
point of shipment, for use in the handling
of the shipment, setting out such matters
as the point of origin and destination and a
description of the shipment.
Working Capital The short-term assets a
company has at its disposal to produce
further assets. These include items such as
cash, accounts receivable, inventory and
marketable securities. The amount by which
these exceed the company’s short-term
liabilities is the net working capital or net
current capital.