Helping Small Businesses Like Yours

Imagine you have a garment company in Singapore.  If your company does frequent transaction, then you can take help from your bank by using bank guarantee service. In today’s article, we will talk about bank guarantees and its benefits with examples. Let’s start it. Definition of Bank Guarantee   You may know that Bank Guarantee is an agreement between three parties (the bank, applicant, and beneficiary). Applicant is the party who look for the bank guarantee from the bank and the beneficiary is the one to who receive the guarantee. Types of Bank Guarantee   There are many types of a bank guarantees. Such as Financial Guarantee, Performance Guarantee, Advance Payment Guarantee, Loan Guarantee, and Bid Bond Guarantee. Example   Suppose company ABC is a small, almost unfamiliar garment company that would like to purchase huge material. The manufacturer dealer may demand Party ABC to prepare a bank guarantee in order to feel more confident that it will make cash ...

A letter of credit is undoubtedly an important tool in international trade. It provides an assurance to the exporter of receiving payments. Nowadays, many business owners in the UK are showing interest in the letter of credit. If you are involved in international business, you are also advised to take the same route. You should contact a renowned investment bank regarding the Letter of Credit in the UK. Here you will get the perfect guidance. But prior to contact, take a look at the adjoined passage to know about this financial instrument. What is the Letter of Credit? A Letter of Credit is a document issued by a bank that guarantees the buyer’s payment to the seller within the deadline with the right amount. If the importer is unable to make a payment on the purchase, the bank will take responsibility on behalf of the importer. The Letter of Credit is issued against a pledge of security or cash. And the banks charge the fee depending on the particular percentage of the amoun...

There is no doubt that business and risk are concomitant with each other. Hence, in order to avoid risk, many business owners who are involved in international business take help of trade finance. It is an important part of a financial transaction and many investment banks are now offering this service. If you are a newcomer in the world of international business, it highly recommended going for trade finance in Australia. But before contacting an investment bank, you should know about the term ‘trade finance’ in detail. Well, this post can help you in this respect. Different types of trade finance products The different types of trade finance products are including:  Letter of Credit Supply chain finance Export and agency finance Structured trade and commodity finance Aside from reducing the risk of non-payment and non-receipt of goods, trade finance has become an effective tool for companies to improve revenue. Now, go through the attached passage to know ab...

Bank guarantee refers to a particular type of guarantee from a lending institution. This document gives assurance that the liabilities of the debtor will be met. Simply to put, if the debtor fails to give back the debt, the bank will cover the amount. Like the rest of the world, in Australia also this type of guarantee has become popular amidst business persons. Bank Guarantees in Australia enables to decrease the burden of the debtor in a great manner. In the passage attached below a precise discussion is made on the bank guarantee which will provide extensive knowledge about this document. Read them carefully. Some interesting information about bank guarantee Let's have a look in the subsequent points in order to know about bank guarantee. Bank guarantees document exhibits that the person has the capability and sufficient amounts to use for a business transaction. Generally this document comes in the form of a bank, custody or security statement. Different sorts of bank...

At the time of conducting international business transactions, trade financing solutions such as Letter of Credit assure great security and success. And of course, the trusted international banks will help you to make the most of this trade financing procedure. The following passages of this post will help you to learn more about Letters of Credit.    What is a letter of credit? A letter of credit is a document from a bank assuring that the payment of a buyer to a seller will be received on time and at the right amount. In certain cases, when the buyer is unable to make payment for the purchase, the bank will cover the full amount of the purchase. This trade financing solution plays a very crucial role in fixing the international dealings that are likely to entail relevant drawbacks such as distance, different laws, incapability of knowing the business parties, etc. How does LC this work? A letter of credit is basically a negotiable instrument and hence, the issuing...