Bank Guarantee

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-Calculation.pptx

Drawing Power

Drawing Power generally addressed as “DP,” is an important concept for Cash Credit (CC) facility availed by banks and financial institutions. It is the… Read Article
Packing Credit

Packing Credit

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
Disadvantages of Trade Credit

Disadvantages of Trade Credit

Definition of Trade CreditTrade credit is an important Source of Working Capital extended or generated by the business itself. It can be defined as ‘delay… Read Article
Cost of Trade Credit

Cost of Trade Credit

Does Trade Credit also Cost?The statement “trade-credit has no explicit cost” is a misleading statement. It is only partially correct. The trade credit is… Read Article
Advantages of Trade Credit

Advantages of Trade Credit

Trade credit has various advantages, making it a favorite source of working capital for all levels for buyers and a promotional tool for suppliers.… Read Article
Sources of Working Capital

Sources of Working Capital

Sources of working capital can be spontaneous, short term and long-term. Spontaneous working capital includes mainly trade credit such as the sundry creditor, bills… Read Article