Posts

Showing posts with the label Trade Finance

Important Functions of Deferred Payment in Different Sectors

Image
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 ...

Executive Overview of Trade Finance by Oxford Credit Banque Limited (OCB)

Image
  Oxford Credit Banque ’s study explores the structure and recent developments in the global market for trade finance and the interplay between trade finance and foreign trade shifts. In particular, it measures the size and evolution of the market, sheds light on the performance and effect of trade finance during recent episodes of global market funding stresses, and looks at how ongoing structural changes can impact the potential resilience of the market. The primary results are: The function of bank-intermediated Trade finance  Two important roles are performed by bank-intermediated trade finance (or trade finance, in short): providing working capital linked to and in support of foreign trade transactions and/or providing means to reduce the cost of payment. Inter-firm trade credit is the primary alternative to bank-intermediated goods. The ability of companies to lend credit directly is enabled by the ability to discount their receivables and the availability of f...