Letters of Credit

A letter of credit is essentially a financial contract between a bank, a bank’s customer and a beneficiary. Generally issued by an importer’s bank, the letter of credit guarantees an exporter will be paid once the conditions of the letter of credit have been met. Use: Letters of credit are used to minimize risk in […]

The Various Acceptable Collaterals by Financial Institutions

Even the best business idea cannot fully succeed without adequate capital; otherwise, how will the idea be implemented? For a business to succeed it needs to grow; and for growth to take place sufficient money must be put into the business. Sometimes getting sufficient money for your business might mean the necessity of collateral. The […]

Credit Appraisal of Term Loans by Financial Institutions

The primary objective of credit appraisal is to ensure that the money is given in right hands and the capital and interest income of the bank is relatively secured. It denotes evaluating the proposal of the loan to find out repayment capacity of the borrower. The process involves an appraisal of market, management, technical, and financial. […]