What is factoring?

Factoring is commonly identified as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Factoring service is a service that covers (i).Collection of bills, (ii).discounting of bills (iii).maintenance of accounts books in domestic and international trade. Factoring enables companies to sell their outstanding book debts for cash. They sell invoiced receivables at a discount…

What is forfaiting?

The term forfaiting refers to a form of trade finance involving discounting of export bills receivables such as drafts drawn under LC, bills of exchange, promissory notes, or other instruments on without recourse basis. The export of capital goods involves account receivables of medium and long term maturities. It is a general practice that the…

What is wholesale banking?

Wholesale banking is popularly known as corporate banking, also known as business banking. Wholesale banking or corporate banking refers to the aspect of banking that deals with corporate customers such as trading houses, multinational companies, exceptionally large domestic industrial and business houses, prime public sector companies etc. The above types of clientele opt for the…