Oxford Credit Banque Limited

Deferred payment is a financial agreement between the lender and the borrower. It allows the borrowers to postpone the payment of the purchased possessions partly or entirely. Deferred pay comes in many forms and is used in different sectors like agriculture, education, real estate, etc. Therefore, let's focus on the following points to gain an insight into the topic. Different Sectors of Deferred Payment Following are some of the core areas where deferred payment works: Deferred Payment in Agriculture One of the most important reasons for using this type of mortgage in agriculture is for tax purposes. If you are a farmer, it is just apt for you! You can defer the payment for the next corps year. It helps you reduce the tax burden and also provides more liquid cash to pay the workers. It is very similar to an instalment sale. However, such deferment is only valid for farm products and other specific goods Deferred Payment in Education The most beneficial use of deferred payment is ...

The tender bond standby includes a three-party guarantee - a principal, an oblige, and a surety. The principal is the contractor that offers the bond, and the oblige is an entity that runs the bond. It comprises the federal government, upstream contractor, or the general contractor.  The surety is the bond company that makes the guarantee. The first job of a tender standby is protecting the obligation. It ensures that the selected bid of the contractor will enter into the contract at the bid price. Therefore, it protects the oblige from the additional cost. Bid bonds are also helpful to prequalify the subcontractors of the third party, such as a surety company. Tender Bond Standby: How Does It Work? You can express the tender bond standby as a percentage included in the bid. Usually, it lies between five to ten per cent. For example, let the bids be $100,000, with a 10% bid bond. The surety will pay $10,000 or 10%. But the tender standby assures the difference between the next clos...