Logo

Simplified Trade Finance

Articles On Sme Finance

Trade Advice
Types of Letter of Credit

Types of Letter of Credit

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

Trade Advice
Forward Contract Meaning, Types, Examples & more

Forward Contract | Meaning, Types, Examples & 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

Trade Advice
What is an Overdraft facility, and how does it work

Overdraft Facility | What is it & How does it work

An overdraft is a facility provided by the bank through which an account holder can borrow up to a certain sum once the account balance reaches zero. The lender levies interest or an overdraft fee on the borrowed amount, and the money is to be returned within stipulated time frames. Read More

Trade Advice
Working Capital Loans

Working Capital Loan | Meaning, Process, Types & more

A Working capital loan is a loan that is offered to businesses and companies to carry out their day to day operations. These are mostly short-term loans and are taken by the companies to cover their immediate operational costs like salaries, rent, sales and marketing costs, etc. Read More

Trade Advice
Letter of Credit Explained with Process & Example

Letter of Credit Explained with Process & Example

A letter of credit or LC is a written document presented by the importer’s bank on the importer’s behalf. Through its issuance, the exporter is assured that the issuing bank will make a payment to the exporter for the international trade conducted. Read More