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

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