Cache

The first file your computer will look in when you ask it to download a website - the cache is where it stores the things you have asked for before. It means the items will load much quicker if they are in the cache.

Call

For Foreign Exchange this is the right to buy the currency under the terms of an option contract.
For a Guarantee this is a claim or demand for payment made under a Guarantee.

Call Account

The name given to a type of Money Market notice account with instant access up till 12 midday.

Cancellation

The date or time that the Guarantee is cancelled. 

Capital

Amounts owing to the business owners. This will comprise their original investment + profits -any losses - any monies paid out to the owners. Part of the long term liabilities of the business.

Capital Allowances

The amounts by which assets are depreciated in a given financial year in a business' books of account which can be offset against (used to reduce) a company’s taxable profits to reduce it's tax bill. Also called Writing Down Allowances (WDA's). 

Capital Expenditure

Any payments which are used to acquire new fixed assets. 

Capital Gains Tax (CGT)

A tax on gains made when you sell assets - for example some shares in a company or a holiday home. -There is an annual amount you can gain each year without paying Capital Gains Tax (the annual exemption).

Capital Repayment Holiday

A period during which repayments cover interest charges only. The outstanding capital will not reduce until the end of the holiday period.

Capital Sum

Used in relation to Money Market. The amount of money invested on which interest is earned. 

Card Processing

The name of our card payment clearing product within the UK. It enables a retailer to accept all major debit and credit cards and ensures fast, accurate crediting to a current account. Also known as Acquiring and Merchant Services.

Card Abuse

The misuse of a Debit Card or Cheque Guarantee Card (in conjunction with a Cheque Book) to obtain cash or make purchases leading to an unauthorised overdraft or excess on the associated account.

Carrier

A party undertaking the transport of goods, e.g. a shipping company. 

Cartel

A group of companies or countries which collectively attempt to affect market prices by controlling production and marketing. May be illegal in some countries e.g. USA.

Case of Need

An agent nominated by a principal to whom the collecting bank may refer to in specified circumstances when handling a collection.

Cashflow

Shows the movement of money through the business, the cash position and gives an indication as to whether the business is likely to have enough cash to see it through a specified period. In relation to annual accounts, cash flow is defined as the pre-tax profit plus depreciation allowances and other charges.

CCA (Consumer Credit Act)

Legislation regulating all finance agreements where the customer is a private individual or partnership and the aggregate of the repayments is less than £25,000.

CD Rom

A special CD which cannot be written over. Used for storage of computer software. Short for 'Compact Disc - Read Only memory'. Contrasts with CD-RW.

CD-RW

CDs for computer data storage where you can record over the data, and hence reuse the disk. Short for CD-Rewriter. Contrasts with CD-ROM. 

CHAPS

Clearing House Automated Payment System CHAPS is the UK’s electronic transfer system for sending high value/low volume sterling payments between banks with same day value.

CHAPS Euro

Clearing House Automated Payment System Euro CHAPS Euro is the UK’s electronic transfer system for sending high value/low volume Euro payments between banks with same day value.

Charge Card

Similar to a credit card, but the balance on the monthly statement must be paid in full every month.

Chargeback

This is an unpaid card transaction returned to the acquiring bank by the issuing bank.

Chaser

A reminder sent by a bank to an importer repeating a request for payment.

Chattels Mortgage

A fixed charge over a fixed asset can be taken over any tangible identifiable fixed asset. A chattels mortgage is not a valid form of security under Scottish Law. This is applicable in both circumstances where the company is registered in Scotland and also where the asset will be used in Scotland by a company registered in England & Wales.

Chip card

A new method of storing customer and account information on a plastic card using a microchip. This reduces the possibility of counterfeit fraud and allows far more information to be stored on a card than was possible with magnetic stripe-only cards. Also known as ICC (integrated circuit card) or smartcard.

Cirrus

A network of cash machines spanning over 600,000 locations around the world. Allows you to draw cash in local currency using any card bearing the Cirrus logo.  Our Debit Cards are members of the Cirrus scheme.

Claim

See Call. 

Claim Documents

The document(s) specified in the Guarantee that must be submitted by the Beneficiary with any claim or demand.

Clean

A term used to describe a bill of exchange or cheque sent for collection with no shipping documents.
A bill of lading with no remarks on its face notifying a defective condition of the goods or the packing. 

Clean Bill Purchased

A bill of exchange purchased with no accompanying shipping ‘purchase’ documents. 

Clean Bill Receivable (CBR)

A bill receivable with no accompanying shipping documents. The term is more often used for non-trade bills such as travellers cheques.

Clean Collection

A bill of exchange sent for collection with no accompanying documents.

Clean Import Loan (CIL)

A loan granted to an importer for payment of import bills, without the Bank having any claim to the goods. 

Clear(ed)

Cleared is a term used to describe funds that have completed the clearing cycle and are available to spend, e.g. when a cheque you have paid into your account has been paid by the paying bank. Note, however, there is still an opportunity for a cheque to be returned.

Cleared balance

The balance of an account that shows the funds available to spend or withdraw, and includes transactions that have cleared, i.e. have completed the clearing cycle.

Clearing Cycle

This is an agreed industry process to complete the payment of transactions within a given period. A paying bank is informed of an impending transaction against an account, and has a certain amount of time to stop or return the transaction before it is debited to the account.

Clearing House

An organisation operating on behalf of the banking and finance industry. It facilitates the management and settlement of transactions within a given period for a particular region or country. See BACS, CHAPS, and ACH.

Close out Costs

The costs of terminating a foreign exchange contract, where there is a commitment on your part to transact. 

CNP

Cardholder not present. A debit or credit card payment made via the internet, by telephone or mail order, to pay for goods and services, where the customer is not present to initiate and sign for the transaction.

Collar

Applies to both the foreign exchange and interest rate markets. The strategy places a limit on the downside risk whilst allowing limited benefit from a favourable move.

Collection Bank

The bank instructed to collect payment of a bill of exchange from the drawee; the bank is usually located in the same country as the drawee. 

Collection Order

Form submitted, with documents, to the Remitting/Negotiating Bank by an exporter with his instructions.

Commission

A fee payable for certain services provided by the bank. 

Computer & Electronic Equipment

The sum insured should include all computer and electronic equipment. The value should be based upon the total reinstatement cost of this property to their nearest equivalent.

Computer Breakdown

This extension will cover the business in the event of damage to computer equipment caused by breakdown, including costs to reinstate information and increased costs of running the business until repaired.

Conditional Guarantee

A Guarantee that does not become payable unless the Guarantor has verified that the Applicant is in breach of its contractual obligations and that as a result of that breach the Beneficiary has suffered or incurred a loss or damages.

Conditional Sale

An agreement where the customer agrees to buy the goods at the outset but ownership does not pass to them until all the scheduled payments have been made.

Confirmed

One way to reduce the risk of your transaction is to request that your letter of credit is 'confirmed'. This means that a bank, usually the advising bank adds its own undertaking to pay, accept or negotiate to that of the issuing bank. The confirming bank therefore removes the risk of non payment by the issuing bank and other risks associated with the country of the issuing bank.

Confirming

A term describing the act of a bank, other than the issuing bank of a documentary credit, which undertakes on its own responsibility to pay, accept or negotiate under a documentary credit.

Conforming Demand

A demand that complies in all respects with the terms of the Guarantee and /or Counter Guarantee.

Connect

Barclays brand name for their debit card function. Our Debit cards belong to the SWITCH scheme.

Consignee

The person/company/bank to whom the goods are delivered/addressed. 

Consignment

Shipment of goods.

Consignor

Also called shipper, is the person/company who sends the goods by ship, by land or air. 

Consumer Credit Act (CCA) Regulated

Legislation regulating all finance agreements where the customer is a private individual or partnership and the aggregate of the repayments is less than £25,000.

Consumer Durables

A term used by Marketing professionals to describe goods bought by individuals that cannot be consumed; e.g. television, fridges, furniture etc.

Contents, Fixtures & Fittings

For an Office Policy the contents sum insured should include all fixtures and fittings such as shelving units, furniture and office equipment excluding computer and electronic equipment. The value should be based upon the total reinstatement cost of this property to their nearest equivalent. For a Retail Policy the contents sum insured should include all fixtures and fittings such as shelving units, furniture and office, electronic and computer equipment. The value should be based upon the total reinstatement cost of this property to their nearest equivalent.

Contingent

When one outcome is dependent on another action having taken place before.

Contingent Liability

A contingent liability is a potential liability which might cause you loss in the future. 

Contract Hire

An operating lease with additional services including the sourcing and supply of the asset and provision of optional fixed cost maintenance.

Contract Purchase

A conditional sale agreement with additional services including the sourcing and supply of the asset and, under a separate agreement, the provision of maintenance and a guaranteed resale or repurchase option.

Contract Works

Another cover often associated with contracting trades, this extension protects the insured for loss or damage to the completed works and materials for which he is likely to be responsible until the Contract is officially completed. For instance, if fire damages an extension during construction, the builder will often still be legally responsible for damage, and will need to replace the damaged works.

Controlling Director

An individual who alone or along with one or more associates is able to control at least 20 per cent of the ordinary share capital of a company. 

Convertibility Risk

Is the risk that an amount in hard currency cannot be purchased by selling the local Emerging Market currency as a result of a change of regulations/law in an Emerging Market country.

Convertible Currency

Is one that can be easily traded for a ‘hard currency’ such as Sterling or US Dollars.

Cookies

Mini-programs that a website may add to your PC to enable them to recognise you the next time you visit. This may be so that they can analyse who is using the site, but may also mean that they can let you into a service you have subscribed for.

Corporation Tax

Tax paid by limited companies on their profits.

Correspondence Address

This is the address of the location where you would like any correspondence to be sent to if different from the Risk Address.

Correspondent Bank

A bank in another country used to process instructions on behalf of a bank that does not have a local presence. Transactions and instructions that require settlement within that country will be passed to the correspondent for action. This agreement can also work in reverse, i.e., a bank in the UK may act as a correspondent for an overseas financial institution. In the context of Guarantees it is a term used to describe the foreign Issuing Bank who issues the Guarantee to the Beneficiary at the request and on the instructions of the Applicant's 'Instructing' Bank.

Cost of Funds

The interest rate at which a lender (i.e. a Bank) borrows money in the open money markets.

Counter-Guarantee

A commitment given by one bank (Instructing Bank) to another bank (Issuing Bank) in support of the former's request to issue a Guarantee. The Counter-Guarantee will act as the Instructing Bank's Counter-Indemnity in favour of the Issuing Bank.

Counter-Indemnity

The agreement given by the Applicant to the bank (the Guarantor) specifying the terms of the Applicant's indemnity to the bank.

Covenants

Legally binding agreements where one party makes a promise or a commitment to another party. 

Credit Card

Allows you to purchase goods and services and withdraw cash up to an agreed credit limit. It may be branded MasterCard or Visa – both are acceptable at over 14 million outlets world-wide. The account is run separately to the current account and minimum payments must be made monthly, typically 3% of the balance. For insurance cover purposes this includes Credit cards, charge cards, debit cards, bankers cards and cash dispenser cards.

Credit limit

Some payment systems require a trading limit to be placed on an account. This allows a company to operate freely within the limit without the need for constant referral. It also provides the company and the bank with a degree of protection against fraud and error. The limit is usually agreed between the company and the bank. Some product application forms will require the applicant to propose a trading limit. This should be calculated to account for the payment requirements of the business, and possibly to include processing peaks (such as irregular salary bonuses). Credit limits for such services can be adjusted by contacting the bank either for one-off ad hoc requirements, or to change the limit.

Credit Line

It is an expression of risk that the bank uses, when no actual borrowing exists. 

Credit Rating

A credit rating is an assessment of the lending risk associated with an individual (in a personal or business capacity) or a business. Credit ratings are usually bought from a credit reference or rating agency, such as Dun and Bradstreet, Experian or Equifax.

Cross-Border

Where a transaction involves individuals/companies in two or more countries. 

Currency

The monetary unit used in particular countries (i.e. US dollar in the USA, yen in Japan, sterling in the UK).

Currency Exposure

The commonly used term for describing the risk arising from a requirement to exchange one currency for another. Also called Transactional Risk. 

Currency Option

See Option.

Current Assets

Cash and other assets that are expected to be used or realised within one year. Includes cash, stock, investments, prepaid expenses and monies owed to the business (receivables). Appear at cost price or market price.   

Current Liabilities

Debts owed or other obligations that the company expects to meet within the next year. Includes short term debt, outstanding accounts payable, the portion of long term debt that will be repaid within the period, income tax payable and dividends payable. 

Cut-off times

The time by which the bank must receive a payment instruction in order to process for a particular value date. The cut-off time will vary depending upon the type of payment or payment method, and currency of the instruction.