Leasing Finance: A lease is a contract between the owner (lessor) and the user (lessee). There are various types of lease viz. operating lease, finance lease, etc. In terms of lease agreement, the lessor pays money to the supplier who in turn delivers the article to the lessee. The lessee (hirer of the article) makes…
Bills finance is short term and self- liquidating finance in nature. Demand Bills are purchased and Usance bills are discounted and the bills drawn under Letter of Credit (LC may be on sight draft or usance draft) are negotiated by the banks. The advantage of bills finance is that the seller of goods (borrower) gets immediate…
A Cash Credit (CC) account is a credit facility extended to a borrower in the form of running account (like a current account). Under this facility the borrower is permitted to continuously overdraw from his account up to a certain specified amount sanctioned by the bank. This type of funding is provided by banks on…
Overdraft means allowing the customer to draw cheques over and above credit balance in his account. Overdraft is usually allowed to Current Account Customers and in exceptional cases SB A/c holders are also allowed to overdraw their account. The high rate of interest is charged on the daily debit balance of overdraft account. There are…