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
Sources of Working Capital
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 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
Invoice or Bill Discounting or Purchasing Bills
The terms ‘invoice discounting’ or ‘bills discounting’ or ‘purchase of bills’ are all same. Invoice discounting is a source of working capital finance for… Read Article
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
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
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 can be spontaneous, short term and long-term. Spontaneous working capital includes mainly trade credit such as the sundry creditor, bills… Read Article
Types of Invoice / Receivable Factoring
There are various types of factoring based on variations in the different services and agreements between the business and the factor. Such different types… Read Article