Glossary

B2B

Business to business - a term that describes businesses that sell direct to other businesses. This kind of terminology encompasses a whole range of acronyms where B=business, C=consumer, E=employee, G=government, and P=person/peer.

Balance

The amount available in your account after payment of service charges not including withdrawals or debits, or deposits not credited.

Balance sheet

A financial statement at a given point in time. It provides a snapshot summary of what a business owns or is owed (assets) and what it owes (liabilities).

Bandwidth

The capacity of data that a line or channel can carry in a given amount of time. Digital bandwidth is measured in bps or bits per second. The bandwidth of your internet connection will have a significant impact upon your download times. For example a typical webpage will take approximately 14 seconds to download using a standard 56kbps modem. An average 4Mbps broadband connection will be almost 100 times faster.

Bank giro credit

This is the most common form of paying money into a bank account or making a transfer from one account to another.

Banker's draft

This is a cheque issued by a bank itself. These are used for making large purchases, like a car. You would get a banker's draft by transferring money out of your account to your bank. In return, the bank gives you one of its cheques - a banker's draft. This means that the draft will not bounce. However, if you are selling something, you should never hand your products/goods over until your bank has confirmed the draft has gone through, and that the bank has cleared funds in your account. This is because the banker's draft could be forged or stolen. Banks generally charge a fee for issuing drafts.

Banker's reference

A banker's opinion about your or another customer's ability to enter into, or repay, a financial commitment.

Bankers automated clearing system  (BACS)

This is the system for sending money electronically between banks. Bankers automated clearing system payments happen when money is sent from one bank account to another electronically.

Banking code

This was the voluntary code of standards for good banking practice followed by banks and building societies for consumers in the UK. On 1 November 2009 this was replaced by the Financial Standards Authority's Business Code of Banking Sourcebook - which monitors retail bank deposit taking - and the British Bankers' Association's Lending Code, which sets standards of good practice for banks, building societies and credit providers in relation to loans, credit cards, charge cards and current account overdrafts.

Banking Conduct of Business Sourcebook  (BCOBS)

The Banking Conduct of Business Sourcebook was introduced in November 2009. It replaced the non-lending aspects of the Banking Code and Business Banking Code and monitoring banks' and building societies' deposit-taking activity for consumers.

Bankrupt

A debtor that is judged legally insolvent. A person can become bankrupt upon voluntary petition or one invoked by their creditors. The debtor's remaining property is then administered for the creditors or is distributed among them.

Banned and restricted goods

Restricted goods require a licence or certificate before they can be imported into, or exported from the UK whereas banned goods cannot be imported even under licence.

Base rate

The interest rate set by the Bank of England which is used as the basis for the rates banks offer and charge customers.

Basic products

In the Common Agricultural Policy (CAP), a product of the soil, of stock farming and of fisheries, shown in Annex I to the Treaty of Rome. The term also covers goods which are the result of first stage processing of certain basic products.

Best Available Techniques  (BATs)

BATs must be used by businesses that are regulated by an environmental permit or pollution prevention and control permit to ensure that pollution is minimised.

Best practicable means  (BPM)

BPM is an attempt to balance environmental improvement against cost. The term 'means' includes the design, installation and maintenance of plant and machinery, the manner and periods of operation of plant and machinery, and the design, construction and maintenance of buildings and structures.

Bill of exchange

Written document in which a supplier is guaranteed payment of a specified amount by a drawee. The drawee is generally the customer, but is likely to be the customer's bank if the bill of exchange is used with a term letter of credit. The bill can request immediate payment ('at sight' or 'on demand'). It can specify payment at a later date ('the term'). Drawees become legally liable for payment once they accept (agree to pay) the bill.

Bill of lading  (B/L)

Document generally issued by a carrier which acts as a receipt for goods received for carriage. In addition it provides evidence of the terms of contract between a shipper and a transport company under which goods are moved between specified places for a specified charge. A bill of lading can also act as a transferable document of title to goods - meaning goods can be bought and sold simply by exchange of the bill.

Binding European retrieval of Tariff information  (BERTI)

The correspondence handling and management system used by the Tariff Classification Service. It is used to produce binding Tariff information classification decisions for issue to importers and exporters and liability rulings for issue to Customs staff.

Binding Tariff information  (BTI)

System for implementing the Common Customs Tariff. The information is issued to economic operators by the customs authorities of the European Union (EU) member states. Thus, traders will know, in advance, the tariff classification of the goods they intend to import or export. This information is introduced into a database run by the European Commission (EC) and is legally valid in all member states, regardless of the member state which issued it.

BIS (Department for Business Innovation & Skills)

Government department that works to build Britain's future economic strengths and help respond to the challenge of globalisation.

Bits per second  (bps)

The unit used to measure the speed of data transfer. It is often normally expressed in thousands (kbps) or millions (mbps).

Blue chip securities

Shares of large, reputable and actively traded companies with a record of regular dividend payments. Many of the shares making up the FTSE 100 are blue chips.

Bluetooth

A method of connecting mobile electronic devices that uses radio waves without the need for cables.

Bona fide

In good faith (Latin). In company law, this usually implies an amount of trust that the parties are acting without any hidden or ulterior motive.

Bond

A written promise to repay a debt at an agreed time and to pay an agreed rate of interest - issued by governments, companies, banks etc. Interest rates may be variable or fixed.

Bonded warehouse

A place approved by HM Revenue & Customs (HMRC) for the deposit, keeping and securing of goods liable to excise duty, without payment of that duty. This term is often applied to a Customs warehouse - incorrectly, since no bond is usually required for these.

Border inspection post  (BIP)

Control point at the place of importation into the European Union (EU) where products of animal origin (POAO) and live animals are subject to the veterinary checks regime.

Botnet

A botnet is a group of infected, remotely-controlled computers. A hacker sends out a virus, trojan or worm to uninfected computers. The hacker can then use this 'network' of computers to launch malicious activities.

British Bankers' Association  (BBA)

A not-for-profit organisation which represents the banking industry in the UK. It is funded by subscriptions from its 330 member and associate member banks covering 60 different countries. The British Banking Association (BBA's) mission is to work with its members to create an environment in which they can compete. To do this, the BBA represents banks as corporate bodies, rather than individuals, and speaks for the entire banking sector.

British Chambers of Commerce  (BCC)

An organisation comprising a national network of local chambers of commerce spread throughout the UK. There are also a number of BCC in other countries. BCC provide a range of business services for members.

British International Freight Association  (BIFA)

Body representing the UK international freight services industry. British International Freight Association (BIFA) can provide you with a list of freight forwarders and customs clearing agents.

British Private Equity and Venture Capital Association  (BVCA)

The British Private Equity and Venture Capital Association is the industry body that represents UK private equity and venture capital firms.

British Standards

A British Standard is a document that sets out a technical specification or other precise criteria for materials, products, systems and services. British Standards can indicate that materials and products meet a certain safety or environmental standard.

Broadband

Any system of connection to the internet that is characterised as high-speed - ie can carry data at speeds of more than 128kbps.

Broker

An intermediary who acts as an agent for insurers and on behalf of the insured, and who is regulated by a professional body and codes of practice.

Browser

Software that enables users to search and view information on the internet.

Budget

This is an estimate of income and outgoings, usually completed for a period of at least one month, but can be for the whole year.

Bug

A mistake in a computer program that results in the program or system not working correctly. Later versions of the program typically contain corrections, patches or fixes.

Bureau

A third party providing a service to National Export System (NES) authorised traders to act as their direct representative for the submission of pre-shipment and supplementary declarations.

Business Angels

Individuals who invest their money in growing businesses with the expectation of a high return on that investment.