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 …

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

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 …

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

What is a Temporary Overdraft? (Explanation, Types, Usages, and Limitations)

Introduction We all know life situations are uncertain. Sometimes people get short with money due to unexpected personal problems, urgencies, and fulfilling an emergency financial obligation. The banks understand the financial need of their clients. To help the customer banks introduced this credit facility known as a temporary overdraft.  The lending institute grants finance to …

What is a Temporary Overdraft? (Explanation, Types, Usages, and Limitations) Read More »

What Intercreditor Agreement? Importance, Provisions, and Issues

Introduction In any working relationship financial agreements matter a lot as it outlines the expectation of both parties, and protect the dealer’s rights if the pre-decided expectations aren’t met.  Intercreditor agreement is one of the popular concessions in the field of finance.  Definition The inter-creditor agreement is also known as an inter-creditor deal. In the …

What Intercreditor Agreement? Importance, Provisions, and Issues Read More »