19 November 2008
Plz.any one answer the followings:-
1)What is Over Draft?What are the criteria to allow overdraft? 2)What is Cash Credit? What are the criteria to allow Cash Credit? 3)And Finally what are the differences between these two? 4)Is there any ceiling limit for deposit to the S.B A/C? 5)Is there any ceiling limit for deposit to the Current A/C? 6)What is Letter of Credit?
19 November 2008
Over draft is allowable on current Account. Customer credibility is very important . In this, customer can draw more than his credit balance in his account.There is a limit fixed by the bank to with draw cash from the bank. Cash credit is a type of advances granted by the branch. It is typicaly a hypothication form .
19 November 2008
LETTER OF CREDIT (LOC) is a legal document issued by a buyer’s bank that upon presentation of required documents payment would be made. Usually confirmed by the seller's bank, protection is given to the seller that payment will be made if the goods are shipped correctly, and protection is given to the buyer that the goods will be shipped before payment is made.
19 November 2008
An overdraft occurs when withdrawals from a bank account exceed the available balance which gives the account a negative balance - a person can be said to have gone "overdrawn". If there is a prior agreement with the account provider for an overdraft protection plan, and the amount overdrawn is within this authorised overdraft, then interest is normally charged at the agreed rate. If the balance exceeds the agreed terms, then fees may be charged and higher interest rate might apply.
19 November 2008
Cash Credit is a short-term cash loan to a company. A bank provides this type of funding, but only after the required security is given to secure the loan. Once a security for repayment has been given, the business that receives the loan can continuously draw from the bank up to a certain specified amount. This type of financing is similar to a line of credit. Sometimes bank funding is just out of the question. Unless your business has excellent credit and a proven track record, a bank loan will be nearly impossible to obtain. Trying to find alternative sources of funding can also seem like a daunting task since there are so many options to choose from. A capital directory can make this process faster and easier since it organizes the criteria of each individual funding source and allows you to find a perfect funding match for your business. No more manually sorting through thousands of different lenders and types of funding to guess which one might be right for you business.
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