Different Cash Management Services Playing a Significant Role in India

Cash management plays an important role in the business field. Without efficient cash management services, it becomes tough to deal with all the monetary issues involved in international trading. Like many other countries, in India now several NBFCs provide important cash management services. These cash management services in India play a significant role in building a strong relationship between exporters and importers by securing a safe transaction. Let’s know about some significant cash management tools in the consequent part.
Cash Management Services
Several Cash Management Services in India becoming popular
There are several NBFC that provide efficient cash management services.  In the passage mentioned below, we focus on some important services within them. Keep on reading to learn them in detail.
Letter of credit- It refers to a significant payment mechanism that is more popular in the international transactions. The main aim of this letter is to provide an economic guarantee from a reputable bank to the exporter. Letter of credit assures that the NBFC or the bank will cover the full amount, if the buyer becomes unable to complete the payment. Because of several causes such as the nature of the dealing, varied law of several countries it has become a significant segment of the international trading process.
Stand-by letter of credit- SBLC or Standby Letter of Credit works as the sign of a good faith in the significant business dealings. An NBFC offers this SBLC on behalf of the client. The issuer banks or he NBFC needs to perform some duties for assuring the quality of the credit. It is also known as the loan of the last resort. Here the bank or the NBFC remain committed to pay the whole amount at the end of the contract if the clients fail to make this payment.
There are two LOCs popular in India. They are financial SLOC and performance SLOC. Amidst them, financial SLOC works as a great cash management tool. It assures the fulfilment of financial contractual agreements.
Bank Guarantee- It shows the capability and funds of a person that he can use in any business transaction. This guarantee from the lending institution gives assurance about meeting the liabilities of the debtor. Like the above mentioned here also the bank or NBFC will cover the debt if the debtor fails to pay it.
A reputable NBFC to contact for effective cash management services
Merchant Trade Guarantee Corporation Company Limited is a reputable Non-banking financial company you can rely on. Since 2000 this trustworthy NBFC has been offering effective cash management services in India.  Their skilled teams of business professionals have years of experience in this specific field.
Location: Suan Luang, Bangkok, Thailand

Comments

Post a Comment

Popular posts from this blog

A basic knowledge of Import Letter of Credit in Thailand

Image
Letters of credit are a secure way of paying for goods in international trade. There is a concern between buyers and sellers in imports and exports as they are located in different countries. The buyer is afraid that the product will be misunderstood and the seller is afraid that the product will be priced. In this case, the letter of credit is the means by which the seller pays the price through the bank and guarantees the correct delivery of the goods to the buyer. Well, LC benefits both the importers and exporters, and today we will discuss on Import Letter of Credit in Thailand . Are you curious? Import letter of Credit is commonly used in international trade transactions, whereby the Issuing Bank promises to pay the Exporter. Yes, a letter of credit is mainly a kind of guarantee given by a bank through which the fidelity between the importer and the exporter is gained and they are assured that the seller will get the price of his product and the buyer is also assured tha
Read more

An Informative Discussion On Bank Guarantees in Thailand With Example

Image
It might seem a challenging task to enhance your business in the cut-throat business world of Thailand. Stop worrying now about increasing the earning, and opt for the bank guarantees in Thailand . It is a helpful means of purchasing goods from an unknown party. In the continuing lines of today’s article, we have tried to provide you with comprehensive knowledge on it. Continue reading. What do the bank guarantees mean? Let’s keep the thing simple. It is nothing but a legal promise. This document is all about demonstrating that a person comes with sufficient funds usable for the business transactions. Bank guarantees are available in bank or custody statements form. Commercial banks or NBFCs give these guarantees to the people remain involved in the transactions.  A significant fact of this guarantee is, this will be valid for a certain period. After crossing it, this document will be nothing more than a useless paper. Bank guarantees, available in two forms, come with a baggage of ben
Read more

Significance Of Non-Performing Letter Of Credit You Should Know

Image
Non-performing Letter of Credit is nothing but a legal document that a bank issues on the behalf of the clients. Non-performing letter of credit, also known as SLOC (Standby Letter of Credit) assures the payment on the client’s behalf if any client cannot fulfill the agreement. Like all places all over the world, in Thailand, this letter of credit provides security in business transactions. Feeling interested to know about non-Performing letter of credit in Thailand ? Go through the passage mentioned below and gather significant information about this potent financial tool. Importance of Non-Performing Letter of Credit Standby letter of credit is important and beneficial both for the sellers and buyers. Go through the passage mentioned below and know the significance of the standby letter of credit in brief. SLOC presents a significant role in the business field.  According to any specific agreement, if the client does not pay, the seller can provide a Standby letter of cre
Read more