Recourse and Non-Recourse Factoring
Definition of FactoringFactoring is a financial service in which the business entity sells its bill receivables to a third party at a discount in… Read Article
Sources of Working Capital
Factoring
Definition of FactoringFactoring is a financial service in which the business entity sells its bill receivables to a third party at a discount in… Read Article
Working Capital Loan and Finance
What is a Working Capital Loan?Working capital loans are financial products structured by financial institutions to help businesses fund their working capital needs and… Read Article
Bank Overdraft Facility
Overdraft DefinitionAn overdraft occurs when an account balance goes below zero after a transaction and can be viewed as a short-term loan from a… Read Article
Drawing Power v/s Sanctioned Limit
The sanctioned limit is the total exposure that a bank can take on a particular client for facilities like cash credit, overdraft, export packing… Read Article
Advantages and Disadvantages of Invoice Discounting
Invoice discounting is a technique or a process by which a company can borrow cash from financial institutions on the basis of the invoices… Read Article
Difference between Overdraft and Cash Credit
Overdraft (OD) and cash credit are widely used external sources of finance to avail short-term borrowing. Businesses use both cash credit and overdraft to… Read Article
Advantages and Disadvantages of Bank Overdraft
A bank overdraft is a facility extended by a bank to its clients to withdraw funds from their accounts in excess of the balance.… Read Article
Bank Guarantee
What is Bank Guarantee?Bank Guarantee (BG) is an agreement between 3 parties: the bank, the beneficiary, and the applicant. The beneficiary is the one… Read Article
Drawing Power
What is Drawing Power?Drawing Power, generally addressed as “DP”, is an important concept used in conjunction with cash credit (CC) and overdraft facilities offered… Read Article
Packing Credit: Definition, Process, and Feature
Packing credit is the most commonly used trade finance tool by an exporter. It is also called pre-shipment finance. And it is very important… Read Article