Bank

This category covers anything related to bank including bank terminology, credit bard, loan.

What is a Revocable Letter of Credit? Definition, Example, Types, And More

Introduction In international trading, there is a lack of personal contact, distance, and separate law in each country, etc. To make foreign trading secure, a letter of credit is a well-structured way of payment mechanism. There are 3 parties involved in the letter of credit (LC) process; An importer that request the bank for the …

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What is a Sight Letter of Credit? Explanation, Advantages, Disadvantages, and How it is Different from Others?

A Letter of Credit (LC) is a financial document that financial institutions provide as a guarantee for their clients. These clients are businesses that want to purchases goods, usually from foreign businesses. However, it can also facilitate domestic transactions. Usually, foreign transactions for physical goods require LCs or else these transactions cannot take place. In …

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What Is a Syndicated Loan? Definition, Example, Participants, and Benefits

Definition: A syndicated loan is a facility of finance being offered by a pool of lenders. These pools of lenders are called syndicates who agree as a group to provide significant loans for single borrowers. The large borrower can be a corporation, a joint venture for a particular project, or a sovereign government. Syndicate loans …

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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

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

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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Type of Personal Loans – Definition, Explanation, and Example)

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 favorable for certain individuals. For example, they come with easy and flexible repayment schedules. On the downside, …

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