For the purpose of trading transactions either locally or internationally, several financial products are used to provide trade finance assistance. Simply put, trade finance is a funding service to support trading activities. Sanctioned by banks and other financial institutions, trade finance has the following types:
KRV Auditing provides you all the above mentioned finance trade options and then some.
It’s an advanced loan that you receive from bank. It has to be repaid in a definite number of instalments at interest rates that can either be fixed or fluctuating.
Letter of Credit is an undertaking that can’t be revoked. It’s issued by the bank and it states that you complied with all the rules set before you and only then the bank issued you the payment. It’s an assurance that bank gives to consolidate your position in the market. it’s an interest free financing option for the buyer with minimum credit risk to the seller.
Invoice discounting or receivable discounting allows you to receive part of the invoiced amount and the rest of the payment is done once the customer deposits the payment.
These are the facilities that banks extended to provide security to the buyers in case of failures by the seller when it comes to settling an obligation.
Consult with KRV Auditing for more information.
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