Buyer’s Credit | Explained – Meaning, Process, Pros & Cons

buyer's credit

In cross border trade, there is always a credit risk for both buyer and suppliers because both are unknown to each other and at the same time, different legality/ sets of rules are applicable to different countries.

In this circumstance, Buyer’s Credit plays a vital role during international transactions and facilitates such international deals with negligible chances of default.

In this article, we will understand, what exactly is the buyer’s credit? And how it facilitates the export & import of goods/ services around the globe. Apart from this, we will also discuss, the mechanism of issuing buyer’s credit and how it is settled between buyers and suppliers.

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Lines of Credit vs Letters of Credit | 6 Aspects You should know

lines of credit vs letters of credit

The businesses whether they are small, medium or large, require working capital funds some or other day for their day to day operations.

The first and foremost thing that comes to mind when it comes to credit/ loan, is traditional business loans, personal loans. However, there are some other options available that are favourable and convenient to small or medium business owners.

In this article, we will discuss prominent credit facilities available for businesses to cater to their requirements of working capital funds. However, the most prominent credit option available for businesses is the letters of credit and lines of credit.

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Difference between Entrepreneur and Intrapreneur | 7 Crucial Aspects

Difference between Entrepreneur and Intrapreneur

These two terms ‘entrepreneur’ and Intrapreneur’ sounds similar, however, are different from each other. Entrepreneurs are those who create, develop, nurture their own venture by their unique and innovative business ideas, on the other hand, Intrapreneur is a proactive, efficient employee of an existing organisation who works on salary.

An Intrapreneur is slightly different from other typical employees in terms of work efficiency, vision and productivity.

In this article, we will discuss other prominent difference between entrepreneur and Intrapreneur. But before we dig into their differences, let us understand what exactly an entrepreneur and Intrapreneur are.

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Difference between Entrepreneurs and Managers | 7 Critical Differences

Difference between Entrepreneurs and Managers

The entrepreneur and managers are the most valuable people behind any organisation and their roles are equally important for functioning.

Although both the term sounds similar in some contexts yet there are few critical difference between entrepreneurs and managers. The most prominent difference lies in their role, position, thought process and approach for a business organisation.

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Difference between Letter of Credit and Bank Guarantee

Difference between Letter of Credit and Bank guarantee

There is always a credit risk for both buyers and sellers during domestic or international trade/ transaction between two parties. The letters of credit and bank guarantees, both are utilised to mitigate the credit risks of buyers. However, letter of credit and bank guarantee are not similar and often used (domestic and international) in different circumstances during the export and import transaction or performance of real sates and infrastructure projects.

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