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Updated by Emerio Banque on Jan 15, 2021
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Financial Instrument Guides | Banking Terms & Definitions

Here in this list of financial instrument you can read financial guides and can understand the financial terms used in in international banking and financial business transactions. Know whatever you want to know about finance....

Benefits Of Using Corporate Credit Cards

Unlike a business credit card, corporate credit cards are specially designed for established companies to further issuance to their employees. It enables the employees of a firm to spend on authorized business expenses such as hotel stays, or plane tickets, etc without the necessity to use their own card or cash. These cards, also known as commercial credit cards enable employees to act as a business traveler in their firm’s name with their name on it. With the help of this card, the employees can pay for a range of business activities authorized by the company. It makes it easier for employees and employers to manage expenses and several perks. Read more: https://www.emeriobanque.com/blogs/benefits-of-using-corporate-credit-cards

What Are Corporate Payment Cards? Meaning And How Do They Work?

Also known as corporate credit cards, corporate payment cards are the cards which are issued to specific employees by their employer to manage business-related expenses. Whether the employee needs to fly or need a card to reserve plane tickets or purchase office supplies, providing them a corporate credit card is the best way to keep track of expenses and make it easy for the employees to buy what they need. Read more: What Is A Corporate Payment Card?

Advantages And Disadvantages Of Documentary Collection

A documentary collection is a type of transaction where the exporter approaches his bank (known as remitting bank) for the collection of payment, which sends documents to the importer’s bank (collecting bank) along with the instructions for the payment from the buyer. In other words, it is a type of trade finance instruments where an exporter is paid for its shipped goods by an importer after the banks of both the parties exchange the required documents. After the presentation of the documents, the exporter’s bank collects funds from the importer’s bank usually after the goods have arrived at the importer’s location. Read more.. Advantages And Disadvantages Of Documentary Collection

Emerio Banque Swift Code - A Safer and Trusted Way to Transfer Money Overseas

SWIFT Codes (Society for Worldwide Interbank Financial Telecommunication) is also known as Swift numbers used to identify the particular branch of the banks and financial institutions. These codes play a very important role in executing several bank transactions especially when it comes to international money transfer between banks. Read more: - Emerio Banque Swift Code

Documentary Collection: Meaning, Types, And Process

Documentary collection is a type of trade finance where an exporter is paid for his shipped goods & products by an importer after the two parties’ banks exchange the evidential documents. In other words, it is a method of trade finance where an exporter’s bank forwards documents to the importer’s bank to collect the payments for shipped goods. It occurs usually after the shipment of goods at the importer’s location.

Export Finance - Types And Why It Is Required

Export finance is a process of funding the exporters to facilitate their business in the global market. In simple words, it is a cash flow solution for exporters to cater to their production and other global transaction requirements including working capital. International businessmen require export finance when they want to assure the affordability of the production of goods along with an assurance of getting paid on-time while sending goods to another country.

Import Finance and Its Types

Import finance is the process of funding the gap between receiving the goods and sending the payments. It is a special type of trade finance where any bank or financial institution finances the purchase of the goods that are being purchased & exported from one country to be imported into another country. In simple words, import finance is the capital that is being used to bring the goods into the country.

What Is International Trade Finance? How Does It Work And Types

Trade finance is the financial help provided by banks or financial institutions in the field of international trade through various types of financial instruments like bank guarantee, letter of credit etc. These varieties of financial instruments and products helps importer & exporters to execute business transactions without facing any financial inconveniences. It bridges the gap between importers & exporters by adding a third party and covers activities like issuance of letter of credit, lending or forfaiting, etc.

What Is The Difference Between Bank Guarantee And Letter Of Credit?

So, what is the difference? The key difference is that letters of credit are widely used in international trade & transactions due to the risk factors involved in global trade, for example, distance, different laws, and unfamiliarity of the parties to the contract towards one another, etc. While bank guarantees, on the other hand, are often used in real estate and infrastructure contacts to mitigate the credit risks in the domestic market. Read more.. Difference Between Bank Guarantee And Letter Of Credit

Reasons To Use Standby Letter Of Credit In International Transactions

A standby LC is a legal document issued by the bank or any other financial institution on the request of the importer guaranteeing on-time payment to the exporter in the event if the importer defaults on the agreement. A standby LC provides a safety net in international transactions and ensures on-time payment to the exporter for delivering complete service or a shipment of physical goods. It is issued by the banks where the two parties to the contract don’t know each other and the agreement involves risks of international trade such as distance or different laws and regulations etc. Read more.. Letter Of Credit In International Transactions

Different Types of Letters of Credit

A letter of credit, also known as a bank credit letter, payment guarantee letter, or documentary credit, is a legal financial instrument issued by a bank or a financial institution to guarantee the buyer’s payment to the seller. In the event, if the buyer is unable to make the payment or perform the terms and conditions of the contract, the full or remaining amount will be covered by the buyer’s issuing bank to pay the exporters. An LC is a highly-secured and effective form of assuring on-time payment to the exporter while initiating an international transaction. This guide covers only the types of LC. To know more, read our LC guide!

Letter of Credit Guide - Features, Importance & When To Use It

A Letter of Credit or “Payment Credit Letter” is a legal document issued from a bank, guaranteeing that the seller will receive their payment on-time from the buyer for their delivered services with the said amount. In the event, if the buyer is not capable of making the payment or performing the terms & conditions of the agreement on-time, then, the issuing bank will be responsible to cover the full or remaining amount from the importer.

Import Finance - Definition, Types And How Does It Helps

To put it simply, import finance is a type of short-term trade finance where the bank or any private financial institution provides necessary capital or funds to the importers trading in the international market so that they could bring goods from one country to their own without facing any cash issues. This type of trade finance solution is provided by a third-party to finance the goods and services being brought from one country to another. Import finance includes a variety of financial products and services an importer can choose from to bridge the gap between sending and receiving.

Documentary Collection: Meaning, Types, And Process

A documentary collection (DC) is a type of transaction where the exporter approaches his bank (known as remitting bank) for the collection of payment, which sends documents to the importer’s bank (collecting bank) along with the instructions for the payment from the buyer. In other words, it is a type of trade finance instruments where an exporter is paid for its shipped goods by an importer after the banks of both the parties exchange the required documents. After the presentation of the documents, the exporter’s bank collects funds from the importer’s bank usually after the goods have arrived at the importer’s location. Read more:- https://www.emeriobanque.com/blogs/documentary-collection-meaning-types-and-process

Difference Between Bank Guarantee and Collateral

Whenever you apply for a loan, whether you are running a small or big organization, the bank or any other lending institution wants to be ensured about your capability to pay the loan. For this purpose, you are asked about your income sources and credit history so that the lender could be able to establish your credibility before granting the loan. However, if the amount of your loan is large or the lender does not find your credibility suitable for the said loan, you may be requested for the collateral or a guarantee. Now you must be thinking about how you get a loan against a bank guarantee or how it differs from collateral. Read more:- https://www.emeriobanque.com/blogs/difference-between-bank-guarantee-and-collateral

Difference Between Bank Guarantee And Corporate Guarantee

A bank guarantee is a legal agreement between the Bank, the beneficiary, and the applicant ie. the borrower where the bank provides a guarantee to the beneficiary on the behalf of the borrower that the contractual obligations will be met in case the borrower is unable to do so. In other words, in a bank guarantee, the borrower/debtor appoints a lending institution ie. a bank to cover its losses if he defaults or fails to pay the loan. The bank assures the beneficiary through this bank guarantee that if the borrower does not perform his legal obligation or fails to settle the debts, then it will be taken care of by the bank.

Usance Letter Of Credit - Definition And How Does It Differ From Sight Letter Of Credit?

A Usance Letter Of Credit is a particular type of letter of credit where the buyer gets a predetermined credit period ie. These usance letters of credit are payable within a predetermined time only after the presentation of the confirming documents. These are also known as Time LC or Deferred Payment LC.

  • Emerio Banque is one of the trusted, reliable and globally recognized financial institutions offering international trade finance and other online banking services to all its clients across the globe with an expert and professional team of young enthusiasts. They are highly-experienced, trained, and certified capable enough to address your business’s financial needs according to your requirements and suitabilities. If you are running an international business and looking for a safe, legal, and authentic platform to get assistance on import/export finance or other offshore banking services, you are in the right place.

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