Sale and Leaseback

An arrangement where the lessor acquires an asset already owned by the lessee, and leases it back on normal leasing terms. This can be a useful way of releasing cash tied up in business assets.  

Same Day Value

This refers to a payment that is processed (cleared) on the working day that it is initiated. See CHAPS and CHAPS Euro.

Schedule

The Remitting/Negotiating Bank’s advice, sent with a bill of exchange, to the Collecting/Issuing Bank, which lists the documents enclosed and gives collection and/or payment instructions.

Scrip Dividend

A dividend where shares in the company are taken as payment of the dividend as opposed to cash.

Search Engine

The device that lets you search the World Wide Web for subjects you type in. For example Yahoo!, Excite, Alta Vista.

Secondary Period:

A period after the end of the primary period of a lease, when the lease is extended by agreement between the lessor and lessee. Rentals during a secondary period are generally at a much reduced rate (see Peppercorn Rental). 

Secure Server

A server using encryption to protect information. Used for confidential information or buying things over the web. Not all sites use secure servers - look for the 'SSL' (secure socket layer) label or the 'padlock' symbol at the bottom of your screen.

Security

A secondary form of repayment for borrowing if the repayments due under a finance or loan agreement are not made. Security can take many different forms including Chattels Mortgages, Debentures or Guarantees.

Seed Capital

Finance provided for the development of ideas into products. Often smaller amounts, and can be high risk for the investor.

Self-Invested Personal Pension Plan (SIPP)

This allows self-employed and employed individuals who are not members of a company occupational pension scheme to set aside money on either a regular or ad hoc basis for retirement. The minimum investment and the charges are usually higher than a personal pension plan. However, a SIPP does allow you greater freedom to invest your money in a wide range of investments such as specific company shares or commercial property.

Self-liquidating

A transaction with a known source of funds available for its settlement on due date. 

Server

1. Internet - means the ISP 2. Any other context - the main computer in a network, sending out data to other machines / terminals.

Settled / settlement

This term is used to describe the point at which a payment instruction is completed or paid, or when a debt has been repaid in full. In relation to International Trade this is the giving of consideration, e.g. payment of money, acceptance of a bill of exchange or issuance of a deferred payment undertaking in return for documents presented under a documentary credit.
With regard to Foreign Exchange this the fulfilment of a transaction, when the parties perform the relevant obligations of the contract and make delivery of the underlying currency. 

Shipment Date

The date inserted on the bills of lading indicating that goods have been received on board.

Shipper

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

Shipper's Order

Sometimes shown on bills of lading against consignee. Bills of Lading must be endorsed in blank by shipper, i.e.. not to any particular named party.

Shipping Guarantee (SG)

A guarantee issued by the bank to a shipping company against which the goods will be released before the bills of lading are presented. The guarantee will contain the bank’s undertaking to forward the bills of lading when they are received. The bank will normally take 100% cash margin against the value of the goods if the customer does not have a Trust Receipt facility.

Shipping Register

A bank’s register of all goods for which it is handling documents, listed according to the ship carrying them. 

Shipping Terms

See Incoterms.

Sight

A sight bill is payable on presentation to the drawee. Under a sight credit the bank should settle immediately it is satisfied with the documents (unless the sight terms of the credit are in some way modified by its contents). Banks are allowed a reasonable time to check documents.

Simple Demand Guarantee

A Guarantee that merely calls for the Beneficiary to demand payment thereunder without having to submit any other Claim Documents in support of its demand.

Small Firms Loan Guarantee Scheme

A government scheme to help viable businesses who lack security to get loan funding from banks. Most business areas are eligible, but not all. The guarantee covers a percentage of the loan - a greater percentage for existing businesses than for start-ups.

Smaller employer

A company where all employees earn below the National Insurance Lower Earnings Limit of £67 per week (for the tax year 2000/2001) or where there are fewer than 5 employees (When your company expands to 5 employees, one of which is defined as a relevant employee, you will then have 3 months in which to select and set up access to a Stakeholder Pension for all employees).

Software

Computer programs which enable the computer to do things or give you information. Written in or converted to a language the computer can speak. The software is intellectual property which you have restricted rights to use. If you or your staff abuse these rights (e.g. by unauthorised copying), it is treated as theft.

Solo

This is a brand name of a debit card which allows purchases to be made but has no cheque guarantee function.

Sorting code

Unique six digit number used to identify every branch within UK banks e.g. 40-00-00

Spamming

Sending you lots of e-mail you haven’t asked for without your permission. 

Special Presentation

The physical sending of a cheque to the bank branch on which it is drawn in order to require a decision on whether it is to be paid or not. The pay/no pay decision given is binding, although it does not mean a shorter clearing cycle for the cheque. Its speed also depends on postal delivery to the other bank branch.

Spot

The simplest form of transaction for settlement typically in two business days’ time.

Spot Value

Settlement of a spot foreign exchange transaction, usually two business days from the transaction date.

Stage Payment Guarantee

A Guarantee issued to allow a buyer to recover a stage, or interim, payment (not an advance payment) made under a contract or order should its supplier not fulfil its contractual obligations.

Stakeholder Pension

A simple, flexible and low cost pension. The low charges and product simplicity should make retirement planning more attractive and easier for many people. Individuals will normally be able to take the pension benefits built up from a Stakeholder Pension in addition to State Pension and other pension benefits.

Stakeholder Pension Provider

A company providing a Stakeholder Pension plan which is registered with the Occupational Pensions Regulatory Authority (OPRA). OPRA will regulate the operation of all schemes and maintain a register of them. Employers responsible for offering a Stakeholder Pension will need to ensure the Stakeholder Pension they have designated for their employees is continually registered with OPRA.

Stand Alone Agreement

Terms which cover an individual or one-off transaction of a single type. 

Standard Guarantee Forms

Banks and other industry organisations, e.g. the British Bankers’ Association have devised standard model guarantee texts for a number of guarantee types. 

Standby Credit

A documentary credit used to protect the beneficiary against failure by the applicant to fulfil a financial or other obligation.

Standby Letter of Credit

A letter of credit used as an alternative to a Guarantee. A Standby is generally used to protect the beneficiary against the applicant’s failure to fulfil a financial obligation, as opposed to a trading obligation.

Standing Order

Authority given by a customer to make regular payments from their accounts. The amounts and frequency are specified by the customer.

Standing order/standing order mandate

A signed instruction given to your bank to make regular payments, usually on a fixed date and of a fixed amount for a given period, to the account of a specified individual or organisation at another bank or building society in the UK.

State Pension

Often known as the State old age pension. The figures for a single person are £67.50 per week and for married couples £107.90 per week for the 2000/2001 tax year.

S2P (State Second Pension)

Formerly known as SERPS, this provides employed people with an additional State pension based on the level of their earnings. This benefit is funded by National Insurance contributions paid by employees and their employers.

Statement

A summary record of completed transactions on an account, for a given period, and typically showing the balance of the account. In the case of a card account, statements are issued monthly, although with some other accounts you can select the frequency you want the statement to be produced.

Status Report

A report produced by a bank or a credit information bureau, giving details of the creditworthiness and business background of a party.

Stock

This should be based upon the invoice cost of all stock excluding Wines & Spirits and Cigarettes & Tobacco, not retail value. The profit element will be considered under the Business Interruption section.

Stopped Cheque

A customer who no longer wishes a cheque to be paid may issue instructions to stop payment of the cheque, provided it has not already been paid and was not issued in conjunction with a cheque guarantee card under the guarantee limit.

Straight through processing

A term used to describe an automated process whereby an instruction is processed without the need for manual intervention. Also referred to as STP. 

Strategic Risk

This risk is difficult to recognise and generally occurs when you are competing against a company from another country. It is a result of the relative movement in exchange rates between your currency, the currency of the market in which you are competing and the other companies exchange rate to this market. It can even occur where you are not exchanging currency. For example: you and company X (based in France) both sell the same item in the USA and receive US dollars. You both have transactional risk, as you have to convert the dollars to Sterling and Euro respectively but you also have strategic risk. If the Dollar’s value against Sterling stays roughly the same, whilst it’s value against the Euro increases, company X will be able to reduce it’s dollar prices (thus under cutting you on price) whilst still receiving the same amount of Euros.

Strike Price

The price at which an option transaction will be undertaken if the purchaser exercises his right to transact. 

Sub-lease

A lease over property or other asset granted by someone who owns the original lease (which was in turn granted to them by the freeholder). The sub-lease cannot be longer than the lease it derives from. The freeholder's permission is often required for sub-letting, but subletting is common practice e.g. for commercial retail property.

Substitution

The act whereby the prime beneficiary substitutes his own documents i.e. invoices and drafts, in back-to-back and transferable credit operations prior to negotiation of the master credits.

Suitable Pension Scheme

A suitable pension scheme can be: 1. An occupational pension scheme available to employees over the age of 18 or those with a period until retirement greater than five years, within 12 months of the employee starting work, or 2. A personal pension scheme (personal pension plan or grouped pension plan) that meets the following conditions: A. The employee contributes an amount equivalent to at least 3% of each employee's basic pay. The employer can require matching contributions from employees but this must not exceed 3% of each employee's basic salary. Schemes can require matching employee contributions of more than 3% provided this is organised before 8 October 2001. B. Employers operate a payroll deduction facility to allow employees to pay their contributions from their net basic pay. C. The scheme does not impose charges or penalties if an employee transfers or payments are stopped. D. The arrangement must be included in the employee's contract of employment. E. An employee must be able to join the pension scheme within 3 months of starting employment.

Sum(s) insured

The amount for which each section is insured as shown in the schedule or as notified to you at renewal.

Sureties

A party or business who is liable for the debts of another party or business in the event that they cannot make good on their obligations (e.g. a guarantor). 

Surety Bond (Suretyship)

See Default Bond/Guarantee.

Suretyship (Surety Bond)

See Default Bond/Guarantee.

Swap Conventions

Standard terms used in pricing interest rate swaps.

Swaption

A transaction in which one party purchases an option to enter into an interest rate swap. 

Sweeps

Automated transfer of funds between nominated accounts, to maintain a given balance on a particular account.

SWIFT

Society for World-wide Inter-bank Financial Telecommunications. The bank-owned co-operative which supports the communication of financial data and processing needs in the world-wide financial community.