Simplified Trade Finance
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
A sight letter of credit is a document which stands as a proof of payment in return of the goods or services to be released for the transportation by the seller. Once the goods or services reach the buyer, the buyer has to pay the financial institution that provided the Sight LC. Read More
From open account to cash advances, there exist a range of options to facilitate payment between an exporter and their buyer. Each has its own advantages -- and risks. Read More