Simplified Trade Finance
A bank guarantee is a financial instrument wherein a bank acts as the guarantor of the liabilities undertaken by the borrower/applicant. In other words, the bank agrees to pay the amount in case the borrower is not able to fulfil the conditions of the agreement. Read More
Packing credit or Pre-Shipment Credit is a type of finance provided by financial institutions to exporters to make the necessary arrangements for manufacturing the goods for their export orders Read More
There are several types of letter of credit which are used by businesses for International or Domestic trade transactions. It is important to understand these types and their purpose, to use the appropriate letter of credit for your trade transaction. Read More
A forward contract is a financial derivative that is customized between two parties, wherein a commodity is bought or sold at a predetermined price but on a future date. These contracts are not standardized or regulated by any third-party authority and are considered a type of over the counter (OTC) deal between the two parties. Read More
When a transaction takes place between a buyer and a seller keeping an intermediary in the loop, the type of LC used in such cases is known as 'Back to Back letter of credit'. In this article get a complete understanding of what is a Back to Back LC, how it works with an example, its format, terms & conditions and associated risks. Read More
