A letter of Credit is a conditional undertaking made by the bank to pay the exporter (seller) for goods exported, provided the exporter presents documents called for under the Letter of Credit and which comply with the credit terms and conditions. Trading partners who are not too familiar or comfortable to deal with each other… Read more »
A promise made by a bank to provide payment to another bank or lender on a bid, loan, or other liability in the event of default. Banks often make guarantees on behalf of certain clients to promise payment on loans. Bank guarantees reduce the risk to loans and liabilities. Guarantees are usually issued against cash… Read more »
A loan is a debt/credit facility provided by one entity (financial institution) to another entity (company or organisation) at an interest rate, and evidenced by a loan contract which specifies, among other things, the principal amount, interest rate, repayment frequency and date of repayment. These loans vary in tenure but are usually for longer than… Read more »
