What are the benefits of Forfaiting?
What are the benefits of using Receivables Purchase?
Who are the parties involved in Pre-shipment Finance?
A typical Pre-shipment financing transaction involves two main parties: the seller and the finance provider. The buyer is not a party to the financing transaction but depending on the contractual arrangement with the finance provider, the source of the repayment is usually the flow of sales proceeds from the buyer. The history of the commercial relationship is a factor in determining the probability of repayment. Bank and non-bank finance providers are active in this type of financing, particularly in Asia.
What are the Distinctive Features of a Loan or Advance against Inventory?
Key Distinctive Features of a Loan or Advance against Inventory:
What are the benefits of Distributor Finance?
Key benefits of Distributor Finance :
• Working capital optimization permits the distributor to bridge the liquidity gap between the purchase of inventory and payments received from its customers.
• Credit for distributors at a lower cost than what would be available from traditional banking sources.
• Increased credit for distributors based on the existence of actual financial or commercial support from the large manufacturer.
What are the benefits of a Loan or Advance against receivables?
These are the benefits of a Loan or Advance against receivables:
What is the difference between a Bank Guarantee and a Letter of Credit?
A letter of credit is an independent undertaking from the issuer, promising that subject to fulfillment of specific terms and conditions the party in whose favor the undertaking has been issued will get paid even if the party on whose behalf the issuer has given the undertaking refuses to pay. Whereas, the bank guarantee represents a secondary obligation covering default only, thus providing security against non-performance as opposed to performance.
What is the difference between a letter of credit and a standby letter of credit?
A Standby Letter of Credit is different from a Letter of Credit. An SBLC is paid when called on after conditions have not been fulfilled. However, a Letter of Credit is the guarantee of payment when certain specifications are met and documents are received from the selling party.
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What is the difference between a Payment Guarantee & Advance Payment Guarantee?
A Payment Guarantee is a type of guarantee issued by a bank where the buyer/importer is an applicant, which assures the seller that the buyer will honor their financial obligations under the terms of the contract.
An Advance Payment Guarantee, on the other hand, is a type of guarantee that is issued by a bank where the seller/exporter is an applicant, to secure an advance payment made by the buyer to the seller. The purpose of this type of guarantee is to ensure that the advance payment is protected in case the seller fails to perform its obligations under the contract.
What is the difference between the expiry date and the claim date in a bank guarantee?
The claim date is the date on which a beneficiary claims the benefits of the bank guarantee while the expiry date is the date by which the claim has to be made.
