Banking - ThesisBusiness

Pledge in Banking | Meaning With Easy Example

January 21, 2021April 5, 2020 by Raj Verdhan

Before we dig into the concept of the pledge in banking, you need to understand some other terms and conditions regarding debt/loans.

Whenever an individual or business firms require a loan/advance from any commercial banks or financial institutions or companies, then there are two kinds of loan available secured loans and unsecured loans.

In case of unsecured loans, no collateral is required, on the other hand, when it comes to secured loans collateral (security) is required to obtain such loans from any banks or financial institution.

What is Balance of Trade (BOT)? Meaning, Definition | Deficit and Surplus

January 21, 2021December 23, 2019 by Raj Verdhan

Balance of Trade (BOT): Balance of Trade (BOT) also termed as Trade Balance is the largest component of the Balance of Payment (BOP). The major source of revenue for any country is the exports of goods and services to the other countries. The government of any country always wish to encourage its exports to … Read more

Balance of Payment (BOP) | Meaning, Definition | Components

January 21, 2021December 21, 2019 by Raj Verdhan

Balance of Payment (BOP): “A Balance of Payment (BOP) of a country refers to an account that records each monetary transactions between the residents of that country and all other countries during a stipulated period of time. These monetary transactions/ economic transactions can be done by an individual, enterprises, or government of the country”. In … Read more

Bill Discounting |Meaning, Advantages | Process

January 21, 2021December 7, 2019 by Raj Verdhan

The bill discounting/ invoice discounting is one of the sources of working capital funds. As we know, the working capital is one of the most significant requirements to operate small or medium business enterprises smoothly.

However, it is difficult to arrange in nowadays’ scenario as the trading of goods or services in domestic as well as international market are done mostly on a credit basis. The intention of the buyer is always to extend the credit period while the seller’s intention is not to provide long credit.

Thus maintaining a cash inflow for a company/ supplier or exporter is the biggest challenge. Therefore, Bill Discounting facilitates business organisations in maintaining and retaining healthy cash inflow to avoid a cash crunch.

What is Bank Guarantee? Meaning, Types | Charges and Process

February 11, 2020December 5, 2019 by Raj Verdhan

Bank Guarantee: When the Central Government/ State Government or large companies float a tender or offers to purchase goods/ services/ equipment or any other instruments, the small vendors/ supplier or firms require to provide assurance from banks to ensure responsibility of vendors/ firms towards the tender or trade. The banks provide the guarantee of performance … Read more