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

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

7 Key Difference Between Bill of Exchange and Promissory Note

difference between bill of exchange and promissory notes

Although both Bill of exchange and Promissory Note is the negotiable instruments which facilitate the exporter and importer (buyer/ supplier) during a business deal yet there are few key differences which you need to clarify. The major hurdle is the trustworthiness of either party while entering any contract of international or domestic trade (purchase or … Read more

Bill Discounting |Meaning, Advantages | Process

bill discounting
 
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.

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

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

What is Escrow Account? | How does it works? | Meaning and Process

What is Escrow Account? www.thesisbusiness.com When it comes to international trade or large transactions or corporate deals between two parties or individuals where the trustworthiness regarding fulfilment of contractual obligations of any parties or company or individuals is uncertain, there surely arise the requirement of an Escrow Account to avoid or eliminate the risk associated … Read more