Representative who uses your company's product literature and samples to present the product to potential buyers. An overseas sales representative is the equivalent of a manufacturer's representative in the United States. The sales representative usually works on a commission basis, assumes no risk or responsibility, and is under contract for a definite period of time.
SBDC: Small Business Development Center
National network of counselors for small enterprises. Offers services that can help first-time exporters.
Soft Corporate Offer
Where a transferable letter of credit is used, party to whom part of the value of this credit is transferred.
Second Issuing Bank
(1) Bank issuing the second letter of credit in a back-to-back letter of credit transaction. (2) Usually the Advising bank to the prime letter of credit.
Second Letter of Credit
Another name for back-to-back letter of credit.
Secondary Market Research
Collection of data from various sources, such as trade statistics for a country or a product. Working with secondary sources is less expensive and helps your company focus its marketing efforts. Although secondary data sources are critical to market research, they do have limitations. The most recent statistics for some countries may be more than 2 years old, and the data may be too broad to be of much value to your company.
SED: Shipper's Export Declaration
Document used to control exports and act as a source document for official U.S. export statistics. SED's, or their electronic equivalent, are required for shipments when the value of the commodities, classified under any single Schedule B number, is more than $2,500. SED's must be prepared and submitted, regardless of value, for all shipments requiring an export license or destined for countries restricted by the Export Administration Regulations.
Sell / Sell Rate
The rate used when a customer would like to use USD to obtain a foreign currency. The bank is “selling” the foreign currency to the customer.
In respect of any FX contract, the net amount that is due and payable by one Party to the other upon close out or final settlement.
Each set-off date and the final settlement date. This date is the day on which the FX transaction is completed.
Shipper's Export Declaration
Industry leading inspection, verification, testing and certification services anywhere in the world.
The freight tendered to a carrier by one consignor as one piece at one time for delivery to one consignee at one place on one bill of lading.
Seller, exporter or person sending the goods.
When the document is “viewed” by bank. A sight LC means the beneficiary will be paid immediately after presentation of documents in conformity with the LC.
Bill of exchange payable immediately upon presentation.
A draft payable on demand upon presentation.
In a normal confirmed Letter of Credit, the issuing bank will request the advising bank to add its confirmation. A silent confirmation occurs when the issuing bank has not requested the advising bank to add its confirmation but the bank does so at the request of the seller
Saudi Light Crude Oil
The currency of a country that is not readily accepted by other countries and is not readily converted into currencies that are readily acceptable (hard currencies).
United Kingdom Bank Code. This number is included in the IBAN. Similar to a routing number.
Risk that a government or sovereign power will default on its payment obligations.
Sales Purchase Agreement
Straightforward exchange of one currency for another at the current market price.
The purchase or sale of foreign currency for “immediate delivery.” Immediate delivery typically means two days for all currencies except Canadian dollars, which has a one day (or, next day) delivery date. Appropriate for immediate transactions..
Exchange rate for foreign exchange transactions for immediate or near-immediate execution.
Standby Letter of Credit (SBLC)
A Letter of Credit designed to insure the performance of the applicant. The beneficiary of the credit draws under the credit by certifying default on the part of the applicant, for such things as non-payment of funds due, default on a contract, etc.
Statement of Default
Used to support utilisation of standby letter of credit.
An indemnity letter issued by a bank to a steamship line requesting release of merchandise in the absence of original bills of lading. A steamship guarantee is used when goods arrive before the documents. The bank issues this on behalf of buyer/importer. The buyer must pay for goods whether the documents are in order or not, even if documents never arrive.
Straight Bill of Lading
A bill of lading that has been made out to consignee and not “to order”. Only the consignee (buyer) can obtain the goods.
Straight Marine Bill of Lading
The carrier delivers to the consignee (buyer). “Consigned to...(name)”. A straight bill of lading is not negotiable. Only the consignee can obtain the goods.
A financial transaction that has many variations, usually highly complex. They generally involve a simultaneous exchange of assets (the swap) by counterparties for other different assets of comparable value. The assets may be commodities or they may be financial instruments involving interest rates, cash flows, foreign Exchange, debts or equities. In addition to financial profits, the swaps have many purposes such as limiting risks, overcoming restrictions in certain markets, or balancing portfolios.
Agreement to purchase (or sell) a currency for delivery on one date and simultaneously sell (or purchase) the same currency for a particular fate in the future at a specified price.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is an industry-owned co-operative providing secure, standardized messaging services and interface software to over 8,000 financial institutions in 207 countries and territories.
Identifier Code for each bank on the SWIFT System. Must have a SWIFT Code to be able to send a wire internationally; this routes the funds to the proper institution. Sometimes a SWIFT Code is called a BIC Code.
Terms of a financial instrument that is payable upon presentation or demand. A bill of exchange may be made payable, for example, at sight or after sight, which (respectively) means it is either payable upon presentation or demand or within a particular period after the demand is made.
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