What is an API?
Generally, an API is a tool that bridges your software and applications together, so they can communicate with one another.
Ebury’s API allows you to automate your financial workflows, and takes time-consuming manual tasks out of your hands.
What are collection accounts?
You can collect funds efficiently from customers and subsidiaries in 70 currencies and transfer them back into GBP with great exchange rates.
Pooled collection accounts: Pooled accounts are bank accounts used for the pooled collection of client funds - ie. one single bank account used for collection of funds from many different clients.
Segregated collection accounts (RE Accounts): These are bank accounts used for collection of funds for specific clients - ie. one single bank account used for one single client.
What are currency accounts?
Ebury currency accounts are accounts issued by Ebury, for clients to collect funds and initiate outward payments through Ebury. They can be held in the client’s own name and other banks/financial institutions can make payments to them.
What is Ebury Online?
Ebury Online is our platform that allows you to make trades, create beneficiaries, request payments and check your account online. This gives you a clearer view of your accounts and makes managing your funds as transparent as possible.
What is hedging?
The value of currency exchange rates change constantly, which is difficult for companies that trade internationally. Hedging strategically offsets the inherent risk you experience when trading currencies. By hedging, you can limit the risk that exchange rate fluctuations have on your business. Find out more.
What is a forward contract?
A forward contract is a form of hedging.
It allows you to lock in a rate up to five years in advance of needing a certain currency. This helps avoid FX risk and obtain certainty with your margin. While it does mean you can’t take advantage of the market if it moves in your favour, the option of definitely not paying more outways the option of possibly paying less.
What is a fixed forward vs window forward?
A fixed forward contract means that you lock in a rate to drawdown on a specific date in the future.
A window forward contracts means that you lock in a rate to drawdown on a specific date in the future, but can also drawdown in a brief period of time - a window - before that set date.
What is a spot transaction?
When you complete a spot transaction you buy a currency at the current rate. Delivery of funds generally takes place the same day.
What is an NDF?
Non-deliverable forward contracts (NDF) help you protect your margin and manage the risks associated with transactions to and from trade restriction currencies—this includes currencies that cannot be converted.
What is Trade Finance?
A form of unsecured import/export lending. Ebury Trade Finance offers up to £1,000,000 for up to 150 days with no setup or maintenance costs.
A UK based, 24 hour inter-bank payment scheme that allows immediate payment between accounts. Ebury’s transaction limit is £250,000.
This is an inter-bank communication and payment system which stands for Society For Worldwide Interbank Financial Telecommunications. It avoids human errors and reduces the length of time it takes to send messages between banks.
A Eurozone based inter-bank payment scheme that guarantees your euro payments are made quickly and in full. Your payment should be received within a guaranteed time, and banks aren’t allowed to make any deductions from the amount transferred.
An individual or corporation you can make payments to and receive payments from. You can set up beneficiaries with your Relationship Manager or on Ebury Online.
Bill of Exchange:
This is an unconditional order in writing drawn up by the seller asking the buyer to pay a specific amount of money immediately or at a future date.
Bill of Lading:
This is a transport document for shipment of goods by sea, which is issued by a ship once goods are loaded onto the vessel. It’s an important document to prove that goods have been shipped and that they have arrived at the correct destination. We only need this if payment terms specify ‘Bill of Lading’ or ‘Arrival in Port’.
NOTE: The bill of lading has nothing to do with a Bill of Exchange which is a note signed by Ebury’s client promising to pay us back at a time in the future.
A commercial invoice is used as a customs declaration provided by the person or corporation that is exporting items across international borders. It must often include a statement certifying that the invoice is legitimate, with a signature.
Domestic collection means sending funds using a local routing method. This results in often cheaper, faster payments.
IBANs are International Bank Account Number which doesn’t replace your sort code & account number─it’s an additional number with extra information to help overseas banks identify your account for payments.
A packing list is a document that is enclosed with the goods when they are shipped which is used by the receiver of the goods to verify that the shipment is complete. A packing list is generally initiated by the seller of the goods whereas the bill of lading is generally initiated by the transportation provider.
We only need this if payment terms specify ‘Bill of Lading’ or ‘Arrival in Port’.