Bank Archives - Page 10 of 11

Letter of Credit Finance: 10 Types With Detail Explanation

Introduction The financial relationship between buyer and seller is developed on the foundation of trust. To build a long term business interconnection payment guarantee is essential. To make sure the payment transaction smoothly works between parties’ letter of financial credit plays an integral role. Definition In international trading, the banks provide a guaranteeing letter that …

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Different Types of Student Loans: 2 Types and A Student Loan That Suits You

Loans

Types of Student Loans Students generally have two options available when it comes to the selection of loans for their assistance in bearing their school and college expenses i-e federal student loans and private student loans. 1) Federal student loans They are also known by the name of government loans. It helps the students and …

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Bullet Loan: Meaning, How does Bullet Loan work? Pros and Cons

Loans

Meaning Bullet loans in the form of loans where the principal amount of loan borrowed is paid back at the end of the loan tenure. In some cases, interest expenses are also added and then paid at the end of the loan term. Bullet loan provides flexibility to the borrower; however, it undertakes more risk …

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Letter Of Guarantee – Usages, Types, & Advantages

Letter of Credit

By definition, it’s a third-party guarantee on behalf of its client to another party for payment of a contract. Banks and large financial institutes issue the letter of guarantee on behalf of their business clients to their suppliers to ensure the contract payment will be made if their customer fails to make the obligation. In …

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Letter of Credit Vs. Line of Credit: What are the key differences?

Letter of Credit

Financial institutions provide many types of facilities to businesses. Among these facilities are the letter of credit and line of credit. While the names may sound similar, they are different facilities. Both of them have different structures. Similarly, businesses use them for different purposes. They also span over different lengths of time. Businesses must know …

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Payment-In-Kind Loan (PIK Loan) – Meaning, Feature, And Drawback

Loans

A PIK loan, also known as a Payment-In-Kind loan, is a loan where the borrower does not pay interest in monetary terms. In a PIK loan, a borrower pays interest in additional debt rather than cash. With PIK loans, the size of debts can quickly increase and add up to the principal amount of the …

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TYPES OF PERSONAL LOANS – THESE ARE THE OPTIONS YOU HAVE

Loans

Personal loans are loans obtained for different short-term reasons. These reasons are generally more personal such as emergencies. Financial institutions provide personal loans for short to medium term use. Personal loans come with many advantages which may make them favourable for certain individuals. For example, they come with easy and flexible repayment schedules. On the …

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Letter of Credit – Definition, Types, and Examples

Letter of Credit

Introduction Modern-day trade involves global integration as a result of digitalization, and globalization. With global trade reaching new heights with every passing day, it is imperative that associated transactions are also likely to increase as a result of this. With considerable transactions, there is also an added responsibility to ensure that organizations are able to …

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7 Tips to Get Best Home Equity Loan Rates

Loans

Introduction There might be a plethora of reasons which might result in homeowners needing to raise finance against their property. As a matter of fact, it can be seen that a lot of homeowners often tend to spare money for repairs, or any unforeseen circumstances. In this regard, it is also imperative for these individuals …

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How to obtain an equity loan with poor credit?

Loans

An equity loan is a type of loan that is received against some asset with equity. In this type of loan, equity is offered as collateral to obtain the amount of the loan. The asset or equity offered as collateral in this type of loan must have a fair market value above any pending loan …

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