Essential Business and Finance Terminology for Professionals

Posted on Feb 4, 2026 in Business Administration and Management (BAM)

Core Business and Financial Definitions

Commercial Documents and Trade Terms

Invoice: A legally binding document that is sent after goods or services have been delivered.
Pro Forma Invoice: Received before payment or ordering; often replaces a quotation.
Accounting: Systems for recording and classifying business and financial transactions.
Claims: Demands by customers of an insurance firm for reimbursement following an accident or loss.
Turnover: The total business done by a company in a given period.
Consignment: A business agreement where the consignee pays the consignor only after the goods are sold.
Open Account: Goods are shipped and delivered before payment is due.
Carrier: A person or company that transports goods or passengers from one place to another for money.
Duty: A tax you must pay on items you bring into a country.
Freight: Transporting goods by ship, air, train, or lorry.
Exporter: The company that sells goods abroad.
Importer: The company or consumer that purchases them.
Quotas: Official limits on the number or amount of imports.
Subsidies: Money paid by a government to domestic industries to reduce production costs and prices.
International Trade: The exchange of goods and services between countries.
FCL (Full Container Load): Holds only the goods of a single customer.
LCL (Less than Container Load): Holds goods of more than one customer in the same container.
Enquiry: A request sent to a person or company when more information about a product or service is needed.

Key Commercial Documents

Commercial Invoice: A document that contains details of the goods, such as quantity, weight, price, and payment terms.
Bill of Lading: A document signed by the carrier confirming that the goods have been received for shipment.
Insurance Certificate: A document that describes the goods and explains how to claim for loss or damage during transit.
Certificate of Origin: A document that states the country where the goods were produced.
Export Licence: A government document that gives the right to sell specific goods in foreign countries.
Bill of Exchange / Draft: A written order from the exporter instructing the importer to pay a specific amount at a future date.
Packing List: A detailed list of the contents of each package, including weight and dimensions.

Banking and Finance Terminology

Debit Card: Withdraws money directly from your bank account.
Credit Card: You borrow money from the card issuer; you repay it at the end of the month in full or in monthly installments, usually with interest charges.
Current Account: A bank account used for everyday transactions, like paying bills or withdrawing cash.
Deposit Account (Savings Account): A bank account where you leave money to earn interest; it usually has limits on how often you can take money out.
Foreign Currency Account: A bank account that holds money in a currency other than the local one.
Overdraft: An agreement that allows you to spend more money than you have in your account, up to a certain limit.
Loans: A sum of money borrowed from a bank that must be paid back with interest over a fixed period.
Leasing: A financial arrangement in which you agree to use something for a particular period of time (you are not the owner).

Professional Correspondence Templates

Letter of Enquiry (Seeking a New Supplier)

I hope this letter finds you well.

My name is Alba Péret, and I am the [Position] at [Company Name]. We are a [Type of Company]. We recently saw your advertisement in the latest edition of Business Weekly and we are impressed by your range of products.

We are currently looking for a new supplier for our local market. Therefore, we would be grateful if you could provide us with information about your latest catalogue and a current price list.

In addition, we would like to receive full details regarding your Terms and Conditions. Specifically, please let us know:

Your terms of payment and if you accept payments by Letter of Credit.
The trade discounts you allow for bulk orders or initial trial orders.
Your estimated lead times and your policy regarding late deliveries.
Which Incoterms apply to your quotations.

If your prices are competitive and your terms are satisfactory, we would be prepared to place substantial orders on a regular basis.

Thank you so much for your time and attention. We look forward to your prompt reply.

Reply to an Enquiry (Quotation and Terms)

I hope this letter finds you well. Thank you for your enquiry dated 20 January 2026 regarding our products.

We have the pleasure of informing you that Product A and Product B are available immediately from stock. However, regarding Product C, we regret to inform you that it is currently out of stock due to unusually heavy demand.

Nevertheless, as a solution, we would like to invite you to take a look at our new catalogue attached, where you can find products which may suit your needs. Furthermore, you can find more information regarding the prices of our other product lines in the link attached here. Additionally, although you did not mention it, we would like to offer you a 5% special discount on your first trial order.

Regarding your other questions, please find our standard terms:

Prices: Quoted F.O.B. (Port)
Delivery: Within 2 weeks of receipt of order.
Payment: By irrevocable Letter of Credit.

We are enclosing a pro-forma invoice for your reference. For further information, feel free to contact our sales representative, Chloe Morgan, by email: chloemorgan@gmail.com or phone number: 673526992.

We look forward to the pleasure of serving you soon.

Response to a Complaint (Apology and Resolution)

Thank you for your letter dated [Date] regarding the problems with your recent shipment. Please accept our sincere apologies for the inconvenience caused by the condition in which our goods reached you.

We have looked into the matter personally and discovered that the damage was due to an unfortunate oversight in our packing department. It appears that the protective wrapping used was not sufficient for the fragile nature of the components. We take full responsibility for this error.

To rectify the situation immediately, we have already arranged for the shipment of replacement items at our own expense. These should reach your warehouse within the next 48 hours. Please keep the damaged goods until our carrier arrives to collect them.

Furthermore, as a gesture of goodwill, we would like to offer you a 10% discount on your next order.

We are taking all necessary steps to ensure that such a mistake does not occur again in the future.

Overdue Payment Reminders

First Reminder: Overdue Payment for Invoice No. 897

Dear Ms. Bergmann,

We hope this letter finds you well. We are writing to remind you that payment for Invoice No. 897, dated 9th August 2024, is now overdue by 20 days. As a valued, long-standing customer, we want to ensure that there are no issues affecting the timely processing of this payment.

Since payment was due within 60 days from the date of the invoice, we kindly request that you arrange for payment within the next 10 days to avoid any further delays. Please let us know if there were any issues in receiving the original invoice; we have attached a copy of it for your convenience.

If you have already processed this payment, please disregard this reminder. Otherwise, please feel free to reach out if you have any questions or need additional information to complete the payment.

Thank you for your prompt attention to this matter. We look forward to continuing our successful partnership.

Final Reminder: Overdue Payment for Invoice No. 897

This is a final reminder regarding the overdue payment for Invoice No. 897, dated 9th August 2024. Payment was due 60 days from the invoice date and is now 20 days overdue. Immediate payment is required to avoid further escalation.

We request the full payment of £15,825 within the next 10 days. If we do not receive payment by this date, we will have no choice but to seek legal action. This will also result in suspending future orders and reporting this matter to relevant credit agencies.

Legal action is not a step we wish to take, as we value our business relationship with SKL GmbH. However, continued non-payment will leave us no alternative. We strongly encourage you to prioritize this matter to avoid these measures.

A copy of the invoice is attached for your convenience.

We trust that you understand the urgency of this situation and will act accordingly.