Nowadays
with easy access to internet you can buy or sell instantly with online stock trade
finance services. Although stock market can boost your financial stability but
you should never overlook the risks attached to it. Many forge economists
believe that the role of stock market has opened new avenues in terms of
financial as well as the economic growth of a country. The ever fluctuating
stock market can leave you high and dry. You need to understand how to minimize
the risks on your investments. Proper financial guide, market research, expert
advice can help you to deal with the risks involved to a great extent.
As
businesses continue to source overseas suppliers and open up new markets for
their products, the impact on cash flow cannot be underestimated. Commodity
trading companies are now looking beyond traditional bank financing such as an
overdraft to more creative methods that allow funding to be provided off the
back of existing trade cycles. Businesses can then release capital which can be
used to offer customer discounts or extend credit terms resulting in a
competitive advantage for their company. Trade finance services can be tailor-made to individual
business requirements resulting in enhanced financial management and improved
cash flow. By raising finance against documentary credits - companies may be
able to benefit from funds being released immediately.
With
Import Documentary Credit advances, it may be possible to negotiate discounts
from suppliers which can help improve gross margin for the business. Most
alternatives are accessible to mid-market community. An importer for instance
may demand to hold a credit or a discount from a supplier, but it needs to have
the capability to be able to pay. This is where ILC or Import Letter of Credit
comes. It allows stronger negotiating power for credit terms as also for the
quality and pricing of the trade goods that are being imported. On behalf of
the company, the bank guarantees to pay the supplier under strict terms and
conditions.
