Packing list: Document listing the contents of a consignment of goods. May be called for on a letter of credit.

Packager: The person or organization putting together a proposal. In leasing, the leasing company, investment banker, or broker who arranges a leveraged lease.

Patent: A license that secures the holder the exclusive right to make, use or sell and invention.

Payee: Party to whom payment is due.

Paying bank: In a letter of credit, bank that is nominated to make payment to the beneficiary upon presentation of complying documents.

Perils of the Sea: An insurance term used to designate heavy weather grounding, stranding, collision, water damage or lightning.

Political risk: Risk that political instability in the buyer's country will interfere with a buyer's ability to meet payment obligations.

Present Value: The current equivalent of payments or a stream of payments to be received at various times in the future. The present value will vary with the discount interest factor applied to future payments.

Presentation: In a collection, presentation of documents by a bank to a buyer for payment or acceptance. In a letter of credit, presentation of documents by a seller to a bank for payment, acceptance or negotiation.

Presentation period: On a letter of credit, number of days allowed between shipment of goods and presentation of documents to a bank.

Presenting bank: In a collection, bank that presents documents to a buyer for payment or acceptance.

Prime letter of credit: In a back-to-back letter of credit transaction, the original letter of credit that is offered as security for another letter of credit (second letter of credit).

Principal: Main Party to a transaction.

Pro forma Invoice: An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications.

Promissory note: Financial document in which the buyer agrees to make payment to the seller at a specified time.

Protest: Legal procedure that may be administered by a notary public, evidencing non-payment or non-acceptance of a bill of exchange. Useful in support of a subsequent civil action against the defaulter. In a collection, the presenting bank may be instructed to arrange for this.

Purchase Option: A provision in a document that gives the party receiving the benefit the right to purchase the property at a future date. In leasing, a provision by which a lessee has the right to purchase the equipment at the end of the lease. The purchase option may be stated at a specified amount or at fair market value.

Put Option: The requirement to purchase an asset at a particular time and at a predetermined price. This term is used in stock, commodities and leasing. In a lease transaction, this is a lessor's right to force the lessee (or some third party) to purchase the equipment at the end of the lease term. IRS guidelines prohibit put options in tax oriented leases.