Discounting Bill of Exchange | Meaning-Cum-Process

Discounting of Bill of Exchange

Goods or services are bought generally on credit whether it is traded locally or internationally. Therefore, maintaining a positive cash flow becomes a major challenge for suppliers.

Potential Buyers always demand trade credit from sellers while purchasing goods or services. Hence, discounting bill of exchange facilities the suppliers in the management of short-term capital for their business.

This article elaborates what exactly discounting of bill or bill discounting is and how does it work?

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Trade Credit | Meaning, Advantages & Importance in Business

trade credit

Businesses without credit are hard to imagine. In today’s scenario, working capital and cash flow are some of the most significant aspects of business or trading (B2B).

The customers, especially, in B2B (Business 2 Business) want to purchase goods/ services on a credit basis without paying cash upfront.

Therefore, role of Trade Credit comes into picture and plays a vital role in B2B transactions.

This article intends to put forward what exactly is Trade Credit, and how important it is during B2B sales between two parties/ companies.

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Personal Line of Credit vs Personal Loan | 5 Hidden Aspects Did You Know?

personal line of credit vs personal loan

If you’re like most people, you’ll need or want to borrow money at some point in your life. Perhaps you want to fund a large home renovation project or need funds to pay your taxes or to cover unforeseen medical expenses. You may also want to consolidate debt by taking out a loan at a lower interest rate.

A personal loan or a line of credit, depending on your situation, may be able to assist you in achieving your objectives. Although both forms of funding will provide you with the funds you need, they operate in very different ways. This article aims to discuss the difference between a personal line of credit vs personal loan.

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Difference between Merger and Acquisition | 7 Vital Differences

difference between merger and acquisition

Gaint companies often take over small enterprises. There are typically two scenarios that exist, while one company takes over another company. Either a larger company buy the entire (small) company or two companies merge together to form a new company.

Mergers and acquisitions both seem to be words for joining two or more companies that result in a shift in their company structure. They are intended to improve synergies within the enterprise to improve competence and productivity. However, in terms of initiation, method, and effect, there is a significant difference between merger and acquisition.

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Difference between Index Funds and Mutual Funds

difference between index funds and mutual funds

The stock market has always been volatile and completely unpredictable, hence, making a desired return on the investment is not a cakewalk for new investors. Even if, you have been investing in the stock market or mutual funds for years, nevertheless a tiny mistake that could obstruct achieving your investment goal or sometimes leads to even loss.

Therefore, if you are a beginner, it is always recommended to invest through mutual funds. You must have heard the terms ‘mutual funds’ and ‘index funds’; when it comes to an investment vehicle. And it’s possible to get mixed up between the words “mutual fund” and “index fund.”

This article intends to ellaborate the difference between index funds and mutual funds based on various significant perspectives.

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