Business

Banking Essentials: Easy Guide to Business Finance Terms 

Simple Guide to Banking Terms in Business English

Welcome to our Business English lesson focusing on basic banking terms. In this lesson, you'll learn simple explanations for common banking-related words and phrases. Understanding these terms is essential in the business world, especially when managing finances. Let's break down these banking terms into easy-to-understand language, with examples of how they are used in a business context.

Simple Banking Terms Explained

1. Balance: The amount of money you have in your account after all transactions.

   • "Check your balance to see how much money you have."

2. Bank Charges: Fees you pay to the bank for their services.

   • "Be aware of bank charges when you use your overdraft."

3. Branch: A local bank office.

   • "I'll visit the branch to talk about a loan."

4. Chequebook: A book of checks for payment.

   • "Use your chequebook to pay for the office supplies."

5. Cheque: A written order to pay someone from your account.

   • "I'll write a cheque for the invoice."

6. Credit: Money in your bank account or lent to you.

   • "Our company has a good credit standing with the bank."

7. Credit Card: A card used for making payments on credit.

   • "Purchase the equipment using the company credit card."

8. Current Account: A bank account for everyday use.

   • "All our daily transactions go through the current account."

9. Debit: Money taken out of your account.

   • "The purchase amount will appear as a debit in our account."

10. Deposit Account: An account where you earn interest on your money.

    • "Our savings are in a deposit account."

11. Fill in: Complete a form or document.

    • "Fill in the loan application form for processing."

12. Interest: The cost of borrowing money or the earnings on savings.

    • "We need to consider the interest rate on the loan."

13. Loan: Money borrowed that needs to be paid back with interest.

    • "The business took out a loan to expand its operations."

14. Overdraft: A deficit in your account or a facility to spend more than you have.

    • "We used the overdraft to cover this month's expenses."

15. Pay in: Deposit money into an account.

    • "Pay in the day's earnings into the business account."

16. Payee: The person receiving a payment.

    • "Make sure the payee’s name is correct on the cheque."

17. Paying-in Slip: A form for depositing money into an account.

    • "Use a paying-in slip to deposit the cash."

18. Standing Order: An automatic regular payment.

    • "We have a standing order set up for the monthly rent."

19. Statement: A record of all transactions in your account.

    • "The bank statement shows all our recent account activity."

20. Withdraw/Withdrawal: Taking money out of an account.

    • "You can withdraw cash at any ATM."

Knowing these basic banking terms is crucial for handling financial matters in business effectively. This guide aims to simplify these terms for better understanding and application in the business world.