Glossary

Factoring

A means of raising working capital against trade debtors, usually by the sale of invoices to a third party.

Family Management Buy-out  (FAMBO)

Where family members buy out your shareholding in the business.

Final Supplementary Declaration  (FSD)

A customs document for summary declaration stating how many supplementary declarations should have been made in the month and how many have been sent. It must be sent once, at the end of the month.

Finalise/finalisation

The status of an entry after which no further amendment can be made.

Financial Services Authority (FSA)

Independent body that regulates the financial services sector in the UK, including banks, building societies, insurance companies and financial advisers.

Financial Times Stock Exchange 100  (FTSE 100)

Financial Times (London) Stock Exchange top 100 (Footsie). This is the main UK share index representing the price of the top 100 shares. Other variations include the FTSE 250 and FTSE All Share.

Firewall

A hardware or software security device that blocks unwanted data and traffic to a computer network based on set security guidelines. It controls access to the internet by internal users and prevents outside parties gaining access to systems and information on the internal network.

FireWire

Based on the IEEE 1394 standard for connecting high-speed external devices to a computer, such as video and audio-editing devices. It is a complementary technology to Universal Serial Bus, but with a higher bandwidth.

Fixture

A permanently fixed piece of furniture or equipment incorporated into a property. Removing it would cause damage to buildings or land, and is therefore regarded as legally part of it.

Flash

A software product that allows users to produce websites with high quality animation, graphics and interactivity. Most browsers support Flash but a Flash plug-in can be downloaded free of charge.

Flexible Accounting System  ((FAS))

The Flexible Accounting System (FAS) allows payment of charges due on imported goods through an immediate payment accounting system. FAS is for use by Direct Trader Input Agents who process import entries through the Customs Handling of Import and Export Freight system.

Floating charge

A form of security for a debt. Instead of naming a specific property, which can be taken by the creditor if the debtor defaults - as in a fixed charge like a mortgage - a class of goods or assets is named, such as the debtor's stock. This allows the debtor to trade in the assets freely. But if the debtor fails to make repayments, then the floating charge becomes a fixed charge (known as crystallisation) over all the stock at that time and the creditor can take and sell it to recover the debt.

Foreign and Commonwealth Office  (FCO)

Government department responsible for foreign affairs. With the Department for Business Innovation & Skills, the Foreign and Commonwealth Office manages UK Trade and Investment to support international trade by UK exporters and boost inward investment by overseas firms in Britain.

Foreign currency accounts

It may be more convenient for you to set up foreign currency bank accounts if you frequently issue foreign currency invoices. In particular, a euro bank account gives you flexibility in trading with businesses in eurozone countries.

Foreign exchange risk

You're particularly at risk if you hold or receive a foreign currency which is volatile or very weak. Some currencies present extra difficulties - for example, there may be exchange controls requiring government approval before you can exchange a particular currency.

Forward foreign exchange contract

Exporters can hedge against the risk of adverse exchange rate movements by using a forward foreign exchange contract. You agree to sell the bank a particular foreign currency at a fixed future date for a price that is set now.

Forwarding agent

A person or company who is a specialist in customs procedures and the international carriage of goods, and acts on behalf of importers and exporters.

Franchising

Commercial agreements allowing one business to deal in a system or product controlled by another, eg most car manufacturers give franchises to sell their cars to local garages who then operate using the manufacturer's name and corporate brands.

Free alongside ship  (FAS)

An Incoterm, where the seller clears the goods for export. Delivery takes place when the goods are placed alongside the relevant ship at a named port. From this point the buyer bears all costs and risks.

Free carrier  (FCA)

An Incoterm, where the seller is responsible for clearing the goods for export and delivering them to a specified place. This could be the seller's premises or those of a carrier or freight forwarder. The place of delivery determines who is responsible for loading or unloading the goods. Once the goods are delivered the buyer bears all costs and risks.

Free circulation

Free circulation goods are those wholly produced in the European Union (EU), unless they are Common Agricultural Policy goods on which an Export Refund has been claimed, or goods imported from outside the EU on which all import formalities have been completed and all Customs charges have been paid and not refunded, wholly or in part.

Free in and out  (FIO)

The freight rate covers the sea freight only. The costs of loading and discharging the cargo are not included.

Free on board  (FOB)

An Incoterm, where the seller clears the goods for export and delivers when the goods are passed over the ship's rail at the specified port. From this point on the buyer bears all costs and risks.

Free trade zone

Port or area designated by a country's government for duty-free entry of non-prohibited goods.

Free zone

A designated and approved area where imported goods may be stored without payment of VAT or import duty.

Free zone goods

Goods within the designated free zone area which have met the necessary requirements to gain free zone status.

Free zone manager

The company authorised in the designation order as the responsible authority for controlling the free zone.

Freehold

Outright ownership of a property. This type of tenure contrasts with leasehold where the leaseholder has the rights to occupy a property for a specified period of time.

Freight forwarder

An intermediary who arranges for the carriage of goods and/or associated services on behalf of a shipper, importer or exporter.

Freight Transport Association  (FTA)

Represents the transport interests of companies moving goods by road, rail, sea and air.

Frontier

Any place where goods are still to be notified formally to HM Revenue & Customs by placing them under a nominated customs procedure.

Funded unapproved retirement benefits scheme (FURBS)

Unapproved pension schemes aimed at owner-managers prior to April 2006. Schemes carried few restrictions on the level of contributions or benefits that could be received. Employers normally receive tax relief on contributions to these schemes but employee's contributions do not receive tax relief. Since pension reforms were introduced in 2006 these pension schemes have been more commonly referred to as Employer-Financed Retirement Benefits Schemes.