Financial Terms Starting With B

Travel insurance cover for eligible loss, theft, damage or delay involving baggage, subject to policy limits, exclusions, required evidence and any applicable excess.

A facility that moves eligible outstanding credit card debt from one card or issuer to another, usually under a promotional rate or repayment plan. Transfer fees, promotional periods and post-promotion pricing can materially affect the total cost.

A fee charged for transferring an eligible balance to a credit card or financing plan. It may be a fixed amount, a percentage of the amount transferred or subject to minimum and maximum charges.

A larger payment due at a specified point, commonly at the end of a financing arrangement. It reduces regular instalments during the term but leaves a significant amount to be paid or refinanced later.

An arrangement with a bank for holding, receiving, paying or transferring money. Common UAE account types include current, savings, salary, fixed-term and business accounts, each with its own eligibility, fees and features.

A payment instrument issued by a bank on a customer's request, where the bank undertakes to pay the stated beneficiary according to the instrument's terms. Availability, clearing and cancellation procedures vary by bank.

A bank's undertaking to pay a beneficiary if the bank's customer fails to meet specified obligations, subject to the guarantee wording. Bank guarantees are commonly used in commercial contracts, tenders, construction and trade.

Also known as

BG

A standard identifier used to identify a financial institution in certain domestic and international payment messages. It is often referred to as a SWIFT code, although the terms are not always identical in every technical context.

Also known as

BIC

The percentage added by a lender to a reference rate when pricing a variable-rate loan or mortgage. For example, a mortgage may be priced as EIBOR plus a stated bank margin.

A letter issued by a bank confirming specified facts about a customer's banking relationship, subject to the bank's policy and the customer's consent. It is not normally a guarantee of the customer's financial obligations.

A periodic record of account activity showing transactions, balances and, where applicable, fees, interest or profit. Statements are commonly used for financial tracking and may also be requested during credit, visa or compliance checks.

A cheque issued by a bank rather than an individual customer and drawn on the bank itself. It is commonly used for higher-value payments where the recipient wants stronger assurance that funds are available.

A person or entity designated to receive money, benefits or rights. In payments it means the intended recipient; in insurance it can mean the person entitled to receive policy benefits under the policy terms.

The recurring period used by a credit card issuer to group transactions for a statement. The statement date, payment due date and interest-free period are linked to the billing cycle.

A person or business that receives credit or financing and is responsible for meeting the agreed repayment or payment obligations. In Islamic finance, product documents may use terms such as customer or financee instead.

A cheque that is not paid when presented, for example because of insufficient funds, a closed account or another valid return reason. Returned cheques can result in fees and may have legal or credit-reporting consequences depending on the circumstances.

Insurance covering eligible physical damage to the structure of a property, subject to policy limits and exclusions. Mortgage providers commonly require suitable property insurance as a condition of financing.

A bank account opened for a company, sole proprietorship or other eligible business entity. Banks typically require trade-licence, ownership, authorised-signatory, UBO, business-activity and compliance information before opening the account.

Credit or financing provided to an eligible business for purposes such as working capital, expansion, equipment or other approved commercial needs. Pricing and approval depend on the business, owners, financials, cash flow, security and the lender's credit policy.

A short-term consumer financing arrangement that splits an eligible purchase into scheduled payments. In the UAE, BNPL account information from major providers is now included in Etihad Credit Bureau credit reporting, so these commitments can form part of a broader credit profile.

Also known as

BNPL

A facility where a new lender settles an eligible outstanding loan or finance balance with the existing provider and replaces it with new financing. Early-settlement charges and the new product's total cost should be compared before proceeding.