Factoring
Factoring is a trending global trend. The worldwide factoring volume now exceeds EUR 1.299 billion a year — a remarkable figure for an industry which for some forty years, operated almost solely in the United States. Since the 1960s, the industry has grown phenomenally, stretching to over 64 countries around the globe. (Reference: Factors Chain […]
Letter of Credit
Also abbreviated as ‘LOC’ or ‘LC’, a Letter of Credit is a document from a commercial bank or financial institution that guarantees a seller will receive a buyer’s payment on time and for the full amount. If this obligation is not met, the applicant’s issuing bank will pay the difference or cover it in full […]
Performance Guarantee and Performance Bond
Guarantees and Bonds are related but are different. A Performance Guarantee (PG) is a binding legal document issued by a bank or financial institution that confirms a contractor will fulfil the terms and specifications as set out in the client contract. If a contractor does not complete his or her obligations as stipulated in the contract, […]