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10 Feb 2005 - 11 Mar 2021
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  Glossary on Trade Financing Terms - S
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S
Sale and leaseback​:
A transaction whereby a person or a company purchases an asset from its owner and then Leases it back to him. The lessee therefore receives the sale price and continues to enjoy the use of the asset against payment of the lease fee.
Français: Vente couplée à un crédit-bail
Español: Venta y retrocesión en arrendamiento
 
 
Sales Representatives:
An Agent who distributes, represents, provides sale services or sells goods on behalf of a supplier from the same or another country.
Français: Représentant de ventes
Español: Representante de ventas
 
 
Salvage value:
The estimated selling price of an asset (such as plant or equipment) once its Book value has been fully Depreciated​.
Français: Valeur de récupération
Español: Valor residual
 
 
Samurai bonds:
Yen-denominated Bonds issued in Japan by foreign borrowers. Compare with Bulldog bonds and Yankee bonds.
Français: Obligations Samouraï
Español: Bono samurai
 
 
Samurai lease:
A yen-denominated Lease subsidized by MITI to finance the purchase of equipment located outside Japan.
Français: Bail Samouraï
Español: Arrendamiento Samurai
 
 
Saving bank:
A bank whose main business is accepting interest-bearing Savings deposits of varying amounts.
Français: Banque d'épargne
Español: Caja de ahorros
 
 
Savings deposits:
Accounts which pay interest, generally at below-market interest rates. They do not have a specific maturity and may usually be withdrawn upon demand.
Français: Dépôts d'épargne
Español: Depósito (en caja) de ahorro
 
 
Script certificate:
(1) A written obligation by the bank, acting as paying agent for a security issue, to deliver the definitive certificates as soon as issued to the subscriber.
(2) A type of Waybill accompanying merchandise shipments.
Français: Script certificate
Español: Certificado provisional, título provisional
 
 
SDR:
Abbreviation for Special Drawing Right.
Français: DTS
Español: SDR
 
 
Second of exchange:
The duplicate of a draft drawn in original and duplicate.
Français: Deuxième de l'échange
Español: Duplicado de una letra de cambio
 
 
Secondary market:
A market where securities are traded after having been issued and distributed on the Primary market. This is the market for "second-hand" trading of financial instruments. Most trading is done on the secondary markets. The New York Stock Exchange and other world stock exchanges, bond markets, etc. are all secondary markets.
Français: Marché secondaire
Español: Mercado secundario
 
 
Secured creditor:
A creditor who owns debt obligations backed by pledged assets.
Français: Créancier garanti
Español: Acreedor garantizado
 
 
Securities:
Debt certificates (such as Notes, Equity, loan stocks, Bonds or other debt instruments) which prove the ownership (or rights of ownership) of the same.
Français: Titres
Español: Títulos, valores, efectos
 
 
Securitization:
(1) The securing of a loan or another debt instrument by the pledge of assets.
(2) The phenomenon whereby corporate borrowers find it cheaper to raise money by issuing negotiable securities on the Capital market, rather than borrowing from the bank.
Français: Sécuritization
Español: Securitization
 
 
Security lending:
The lending of securities over a period of time.
Français: Prêt de titres
Español: Préstamo en valores
 
 
Security requirement:
A guarantee of payment required by export credit agencies before agreeing to extend cover in certain markets, depending on the legal and administrative system of the borrowing countries. Such a guarantee usually consists of an irrevocable Letter of credit, a confirmed irrevocable letter of credit or a guarantee issued by the local government or Central Bank.
Français: Exigence de garantie
Español: Requisición de garantía
 
 
Self-liquidating loan:
A loan extended to finance the purchase of current assets. The sale of such assets provides the cash to repay the loan.
Français: Prêt auto-amortissable
Español: Préstamo autoamortizable
 
 
Seller (writer) of an option:
The seller of an option is committed to deliver/buy the underlying security if the buyer of the option exercises his right on a Call/Put option at the strike price.
Français: Vendeur d'une option
Español: Vendedor de una opción
 
 
Seller's option:
A provision in a contract which allows the seller to vary the quantities to be delivered by a certain percentage. The contract may also provide options on any other contractual clause, for example the delivery schedule.
Français: Option du vendeur
Español: Opción del vendedor
 
 
Selling group:
This refers to the banks and other financial institutions brought together by a Syndicate manager to sell or market a new issue of securities to the public.
Français: Groupe de vente
Español: Sindicato de venta, sindicato de colocación
 
 
Semi-convertible currency:
A currency which may be bought or sold only through the Central Bank and at specific fixed exchange rate.
Français: Monnaie-semi convertible
Español: Divisa parcialmente convertible
 
 
Separate entity approach:
A tax system whereby each economic unit is taxed when it receives income, e.g. a firm will be taxed on its profits and the firm’s shareholders will also be taxed on the Dividends paid to them from the firm's profits.
Français: Approche séparée des entités
Español: Enfoque unitario
 
 
Settlement dates:
The specified days on which the Forward and futures transactions previously concluded are paid, and delivery of the underlying assets is made (i.e. the Liquidation dates).
Français: Dates de règlement
Español: Fecha de liquidación
 
 
Share capital (UK); Capital stock (US):
The amount of money subscribed by the shareholders, At par, to a company.
Français: Capital actions, Capital de dotation
Español: Capital en acciones, capital social
 
 
Shareholders​:
The persons or entities owning a share in a corporation. Compare with Bondholders​.
Français: Actionnaires
Español: Accionista
 
 
Shareholders' equity:
The Book value of the company’s net assets (i.e. total assets less total liabilities).
Français: Fonds propres
Español: Patrimonio neto
 
 
Share premium:
See Paid in surplus.
Français: Prime sur action
Español: Share premium
 
 
Share index:
An index showing the changes in the average prices of shares or a group of shares on the stock market.
Français: Indice sur actions
Español: Indice de cotización de las acciones
 
 
Ship's manifest:
A written instrument signed by the captain of a vessel, listing the individual shipments constituting the vessel's cargo.
Français: Manifeste du bateau
Español: Manifiesto de buque
 
 
Shipment​:
All of the cargo carried under the terms of a single bill of lading .
Français: Expédition
Español: Expedición, embarque
 
 
Shogun bonds:
Non-yen denominated bonds issued in Japan by non-residents. See also Foreign bonds.
Français: Obligations Shogun
Español: Bono shogun
 
 
Short hedge:
The sale of a futures contract to hedge a market position, i.e. to eliminate or decrease the risk of a decline in the value of an asset (securities, commodities, foreign exchange etc.), or to anticipate a borrowing need. Opposite: Long hedge.
Français: Vendre à terme
Español: Cobertura con posición corta, cobertura corta
 
 
Shogun lease:
A cross border loan (characterized as a Lease) offered by Japanese leasing companies, which may be used as leverage debt in a Leverage lease or simply as a private placement.
Français: Bail Shogun
Español: Arrendamiento shogun
 
 
Short position:
The situation of an investor who has sold securities or commodities without actually owning them, on the expectation that the price of these securities or commodities will fall. A short position must eventually be covered by an offsetting purchase of the securities or commodities sold. Opposite: Long position.
Français: Position "short"
Español: Posición corta
 
 
Short-term commitments:
Commitments which provide for settlement within a relatively short period of time, usually six months (though short-term may sometimes refer to commitments with repayment terms of up to two years). Short-term credit is usually related to the sale of consumer goods and raw materials.
Français: Engagements à court terme
Español: Compromisos a corto plazo
 
 
Sight deposits:
Deposits which may be transferred or withdrawn on demand from a bank. They typically earn little or no interest. In most countries the main kind of sight deposit account is a cheque account. Compare with Saving deposits.
Français: Dépôts à vue
Español: Depósito a la vista
 
 
Sight draft; Sight bill:
A bill of Exchange which becomes due for payment as soon as it is presented to the party obligated to pay, and in general a draft payable upon presentation to the drawee. Compare with Date draft, time draft.
Français: Traite à vue, Effet à vue
Español: Letra a la vista, efecto a la vista
 
 
Simple interest:
The interest rate on a loan based only on the initial amount of the loan. Over time, the interest charges grow in a linear fashion. e.g. a $1000 loan earning simple interest of 10% per annum would accumulate to $1100 at the end of the first year, $1200 to the end of the second year, etc. Compare with Compound interest.
Français: Intérêt simple
Español: Interés simple
 
 
Sinking Fund:
A sum of money usually set aside at regular intervals which will earn compound interest, ultimately sufficient to meet a known future capital commitment or loan repayment. Sinking funds may, for instance, be used to finance the replacement of Fixed assets at the end of their useful life or to redeem loans, stocks or other debentures upon maturity.
Français: Fonds d'amortissement
Español: Fondo de amortización
 
 
Sinking fund requirement:
A condition sometimes included in corporate bond contracts whereby the issuer is required to withdraw a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.
Français: Exigence relative au fonds d'amortissement
Español: Requisito de fondo de amortización
 
 
Society of Worldwide Interbank Financial Telecommunication:
See Swift.
Français: Society of Worldwide Interbank Financial Telecommunication
Español: Sociedad para las Telecomunicaciones Financieras Interbancarias Mundiales
 
 
Soft currency:
This refers to a weak currency which is a less desirable means of payment than other currencies. Countries with weak currencies are those which tend to have frequent currency devaluation, balance of payments difficulties or political instability. A soft currency is usually not fully convertible to all currencies but only perhaps to some other "weak" currencies. Contrast with Hard or strong currency.
Français: Monnaie faible
Español: Moneda débil, moneda blanda
 
 
Soft loan:
A loan by a government or multilateral Development bank which carries no (or below market rate) interest, although there is usually a small annual service charge. It is typically extended to developing countries and has a long repayment period. See also Concessional funds.
Français: Prêt bonifié
Español: Préstamo en condiciones favorables
 
 
Solvency:
The ability of a borrower to meet obligations as they become due. Opposite: Insolvency​.
Français: Solvabilité
Español: Solvencia
 
 
Solvency ratio:
The ratio between a bank's capital and its assets. See also Capital ratio.
Français: Rapport de solvabilité
Español: Razón de solvencia
 
 
Special drawing right (SDR):
A unit of account issued and allocated by the IMF to its member states. It represents an international, non convertible paper money created by the IMF, which member countries may use in case of deficit in their balance of international payments to settle debts with another country, or with the IMF.
Français: Droits de tirages spéciaux (DTS)
Español: Derecho especial de giro (DEG)
 
 
Special Marine Policy:
See Ocean marine insurance policy.
Français: Police maritime spéciale
Español: Póliza marítima especial
 
 
Special Purpose Corporation (SPC):
An independent corporation especially created, even if sometimes with a nominal capital, with the purpose of holding property titles, channelling funds for an export project or project financing.
Français: Société à but spécial
Español: Sociedad de carácter especial
 
 
Specific duty:
See duty.
Français: Droit spécifique
Español: Derecho específico
 
 
Specific Policy/Coverage:
A policy covering an individual export contract against failure to receive the sums due from the foreign buyer. An ECA may charge a higher premium for Specific Coverage than for Comprehensive Coverage because of the "selected risk" nature of the coverage.
Français: Police/Couverture spécifique
Español: Póliza específica
 
 
Speculator:
A person who takes Positions on the market in an attempt to anticipate price changes, with the aim of earning a profit. A speculator does not use the market in connection with the production, processing, marketing or handling of a product. Compare with Trader.
Français: Spéculateurs
Español: Especulador
 
 
Spot market:
The market for the purchase and sale of commodities, securities and other financial instruments for immediate delivery, as opposed to a Futures market which provides for delivery at some future point in time. By consensus, immediate delivery is understood as two business days.
Français: Marché au comptant
Español: Mercado de entrega inmediata, mercado al contado
 
 
Spot price:
The current market price of an actual physical commodity or a security. Also called cash price.
Français: Prix au comptant
Español: Tipo al contado, cotización al contado
 
 
Spot rate:
In foreign exchange dealings this is the rate quoted for immediate delivery of a foreign currency.
Français: Taux au comptant
Español: Precio de entrega inmediata
 
 
Spread:
(1) The gap between the Bid and ask prices of a security, commodity or foreign exchange.
(2) The difference between the spot and forward rates (in foreign exchange trading), or price (for trade in commodities or securities).
Français: Ecart de cours
Español: Margen, diferencial
 
 
Stagflation:
A term indicating the combination of slow economic growth (stagnation) and price increases (inflation).
Français: Stagnation avec inflation
Español: Estancamiento con inflación, estanflación
 
 
Standard and Poors:
One of the top credit Rating agencies.
Français: Standard and Poors
Español: Standard and Poors
 
 
Standard International Trade Classification (SITC):
An international trade classification system developed by the United Nations in 1950 and used solely by international organizations.
Français: Standard International Trade Classification (SITC)
Español: Clasificación Uniforme para el Comercio Internacional (CUCI)
 
 
Standby agreement​:
In a securities issue, this is an agreement by the underwriter to purchase any stock not taken up by public investors, in return for a standby fee.
Français: Accord Standby
Español: Acuerdo de compromiso contingente
 
 
Stand-by arrangement:
An arrangement whereby members of the IMF have the right to borrow a certain percentage of the quota allocated to them by the Fund, for a given period of time. The stand-by arrangement specifies the amount the country may borrow, when, for how long and under what terms. The arrangements are extended for up to three years and are typically intended as bridging loans for countries with balance-of-payment difficulties.
Français: Accord "standby"
Español: Acuerdo de derecho de giro
 
 
Standby Credits:
These are arrangements to lend money in case of need, usually at market rates and sometimes with a commitment fee. Overdraft facilities are sometimes used as standbys by corporate borrowers.
Français: Crédits "standby"
Español: Línea de crédito
 
 
Standby Letter of Credit:
A letter of credit which is usually issued as a guarantee against the non-fulfilment of a contract. Standby letters of credit do not constitute a means of payment but are a guarantee of indemnity in case of non-execution of the contract by the exporter. They are generally used to guarantee financial obligations or contractual performance obligations. Compare with Letter of credit.
Français: Lettre de crédit "Standby"
Español: Carta de crédito contingente
 
 
State trading enterprises (STEs):
Government agencies especially established for the conduct of international trading activities, such as government-operated import/export monopolies and marketing boards with special or exclusive privileges to import and export. They are sometimes also engaged in the direct manufacturing of certain export products.
Français: Entreprise étatique de négoce
Español: Empresas comerciales del Estado, empresas de comercio de Estado
 
 
Stepped FRN:
A Floating Rate Note where the spread changes over time or on a pre-set basis.
Français: FRN à paliers
Español: Bono con interés flotante y escalonado
 
 
Stocks:
(1) Ownership of a corporation which is represented by its Shares.
(2) Shares traded on the stock exchange.
(3) Inventories held by companies in warehouses.
Français: Actions; Inventaire
Español: Existencias
 
 
Stock-output ratio:
The ratio of Inventories to the company's total output.
Français: Ratio: Stock-production
Español: Relación entre existencias y producción
 
 
Straight debt:
A fixed interest rate bond (such as an Eurobond) or loan without the option of Conversion into equity.
Français: Dette sans option
Español: Bono de interés fijo
 
 
Straight letter of credit:
A letter of credit in which the opening bank simply promises to pay the beneficiary.
Français: Lettre de crédit normale (directe)
Español: Carta de crédito irrevocable
 
 
Straights (straight bonds; straight issues):
A bond or other security issued without any Conversion or Warrant clause, but which yields a fixed interest rate for the entire period up to maturity.
Français: Ordinaires (obligations ordinaires, émissions ordinaires)
Español: Obligación ordinaria
 
 
Strike price:
The price at which Put options and Call options can be exercised (i.e. to sell for a put or to buy for a call). The options are 'in the money' or 'out the money' depending on whether the difference between the strike price and the spot price on the markets is positive or negative. The strike price is sometimes called the exercise price.
Français: Prix d'exercice
Español: Precio de ejercicio
 
 
Subject to collection:
A clause whereby the bank has the right to reverse or cancel a credit entry if the counter value of the Promissory notes or other debt certificates (such as Bills of exchange, Drafts and cheques) cannot be collected.
Français: Sujet à encaissement
Español: Sujeto a cobranza
 
 
Subordinated bond:
An unsecured bond which ranks after secured debt, Debenture bonds and, in the case of Liquidation of the issuing company, often also after some general creditors.
Français: Obligation subordonnée
Español: Bono secundario
 
 
Subordinated debt:
In the event of bankruptcy of the borrower, senior debt takes priority over subordinated debt in terms of repayment of the relative debt claims.
Français: Dette subordonnée
Español: Deuda no prioritaria
 
 
Subordination:
(1) A clause sometimes inserted in the terms of a share issue whereby the rights of the shareholders rank after the rights of some, or all, unsecured creditors of the borrower in the event of his Liquidation​.
(2) A provision in a bond’s issue whereby, in the event of a new bond issue, the new lenders' claims are subordinated to the claims of the existing bondholders​.
Français: Subordination
Español: Subordinación
 
 
Subordination strategy:
A policy of the Paris Club creditors whereby loans extended after the cut-off date are not subject to Rescheduling​.
Français: Stratégie subordonnée
Español: Estrategia de subordinación
 
 
Subscription policy:
A policy defining the general conditions of the guarantee but leaving the exporter the choice whether to subscribe or not.
Français: Politique de souscription
Español: Póliza de subscripción
 
 
Sunk costs:
Costs which have already been incurred and cannot be reversed.
Français: Sunk costs
Español: Costo irrecuperable
 
 
Suppliers' credit:
A financing arrangement under which an exporter extends credit to a foreign importer to finance his purchase. Usually the importer pays a portion of the contract value in cash and issues a Promissory note or accepts a draft as evidence of his obligation to pay the balance over a period of time. The exporter thus accepts a deferred payment from the importer, and may be able to obtain cash payment by discounting or selling the draft or promissory notes created with his bank. Compare with Buyer’s credit.
Français: Crédit fournisseur
Español: Crédito al proveedor, crédito suministrador, crédito de proveedores
 
 
Supplier Credit Financing:
A trade financing arrangement by which a bank or an ECA directly extends a loan to the exporter, often collateralized by the exporter’s pledge of his export receivables. The bank or ECA may also purchase or discount the exporter’s receivables with full, limited or no recourse against the supplier.
Français: Financement sous forme de Crédit fournisseur
Español: Financiamiento de crédito suministrador
 
 
Supply-or-pay contract:
A contract under which a supplier commits himself to supply a raw material, product or service for a certain price and at a stated period, or to pay for an alternative supply if he cannot provide it himself as agreed.
Français: Contrat de type "Fourni-ou-paie"
Español: Contrato de suministro o pago
 
 
Surety:
American bonds, guarantees and obligations such as performance sureties, completion bonds etc.
Français: Garantie
Español: Surety
 
 
Surety credit:
A credit guaranteed by a bond issue.
Français: Crédit garanti
Español: Crédito de garantía
 
 
Sushi bonds:
A Eurobond issued by a Japanese corporation.
Français: Obligation Sushi
Español: Bono sushi
 
 
Swap:
In general, an arrangement whereby two parties lend to each other on different terms, e.g. in different currencies, and/or at different interest rates (fixed versus floating).
(1) In a foreign currency swap, two parties exchange on the Spot market (usually at the prevailing spot rate) sums of money expressed in different currencies and these sums are re-exchanged forward. Fixed interest rates are also calculated on the swapped principal amounts. Foreign currency swaps are often used by Central Banks to support the domestic currency, through the swap of the domestic currency for a loan from another Central Bank.
(2) An interest rate swap is an exchange, between two parties, of the cash flows from fixed rate as against floating rate investments, where the cash flows are usually in the same currency and where there is no exchange of principal.
Français: Swap
Español: Swap
 
 
Swaption:
An option on a swap.
Français: Swaption
Español: Swaption
 
 
SWIFT:
An acronym for The Society for Worldwide Interbank Financial Telecommunication. This is a closed network providing secure global communication between financial institutions in over 185 countries.
Français: SWIFT
Español: SWIFT
 
 
Switching:
See Countertrade​.
Français: Switching
Español: Switching
 
 
Syndicate; consortium:
An association or group of individuals or companies which jointly carries out a financial or industrial project, such as the underwriting of a new bond issue.
Français: Syndicat, Consortium
Español: Consorcio
 
 
Syndicated credit; Syndicated loan:
A credit or loan granted jointly by a group of banks, typically when the loan is too large to be provided by a single bank (such as eurocredits​). Syndicated loans are managed by a lead bank which assesses the borrower's needs and tries to get other banks to participate in the loan. The syndicate leader receives a management fee.
Français: Crédit syndiqué, prêt syndiqué
Español: Crédito sindicado, préstamo sindicado
 
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