Bills/Receivables Financing by Banks: Mechanisms and Benefits

Receivables financing, also referred to as bills finance, is a facility offered by banks and financial institutions that enables businesses to convert their outstanding invoices (accounts receivable) into immediate liquidity. This form of short-term funding supports effective working capital management by bridging the gap between the delivery of goods or services and the receipt of…

Understanding the Different Types of Mortgages on Immovable Property in India

(This post explains the essence of Mortgage of properties and several forms of mortgage of immovable properties in India viz. Equitable Mortgage, Simple Mortgage, English mortgage,  Mortgage by conditional Sale, Usufructuary Mortgage, and Anomalous Mortgage which are major types of mortgage systems currently existent in India.) The essence of Mortgage of  properties: The transfer of…

Charge creation: Assignment, Lien, Set-off, Hypothecation, Pledge, Mortgage,Actionable claim, and Trust receipt

The article explains various types of charges created by banks to establish their rights over the specified security when the borrower defaults. The charge creation means establishing the lender’s right to recover from the specified assets of the borrower, in case the recovery is difficult in the normal course. The mode of bank charge on…