Purchase discount of foreign bills, Marketing Research

Assignment Help:

Purchase Discount of Foreign Bills : Purchase or discount facilities in respect of export bills drawn under confirmed export contracts are generally granted to exporters who enjoy Bill Purchase/Discounting limits sanctioned by the bank. As the security offered by the issuing bank under letter of credit arrangement is not available, the financing bank is totally dependent upon the credit worthiness of the foreign buyer. The documents, under the Documents against Payment (DP) arrangements, are released through foreign correspondent only when payment is received.

Whereas in that case of Documents against Acceptance (DIA) bills, documents are delivered to the overseas importers against acceptance of the draft to make payment on maturity. Since the financing banks are open to the risk of non-payment, ECGC policies issued in favour of exporters and assigned to banks are insisted upon.

Under the policy, ECGC fixes limits and payment terms for individual buyers and the financing bank has to ensure that the limit is not exceeded so that the benefits of policy are available. Banks also secure a guarantee from ECGC on the post-shipment finance extended by them either on a selective or whole turnover basis. Banks sometimes do obtain credit reports on foreign buyers before they purchase the export bills drawn on the foreign buyer.

 


Related Discussions:- Purchase discount of foreign bills

Explain marketing concept and the societal marketing concept, Question 1: ...

Question 1: The product manager when introducing a new product wants the product to enjoy a long and happy life. (a) How will the ‘life' of a product be conceptually analyse

Surrogate information errors, Surrogate Information Errors: this type of er...

Surrogate Information Errors: this type of error occurs when the information sought by the researcher is different from the information needed to solve the problem. For example whe

Explain about freudian theory, Freudian theory: _ The idea that much of...

Freudian theory: _ The idea that much of human behaviour stems from a fundamental conflict between a person's desire to gratify his/her physical needs and the necessity to func

Export of computer software, Export of computer Software :  Export of Comp...

Export of computer Software :  Export of Computer Software in physical form is done on GRPP forms. Export of computer software in non-physical form should be declared on SOFTEX fo

Export licensing, Export Licensing:  As you know that all goods may be exp...

Export Licensing:  As you know that all goods may be exported without any restriction except to the extent such exports are regulated by the Negative List of exports. The Negative

Miss, I have to do a marketing research of a customize cellphones company, ...

I have to do a marketing research of a customize cellphones company, for my marketing class, and I don''t have any idea of how to start. Could you help me.

Currency options-foreign exchange risks, Currency Options : As you have le...

Currency Options : As you have learnt the forward contract protects the interest of the holder against the risk of adverse movements in exchange rates. At the same time, the contr

Response hierarchy models, These models are examined giving attention to th...

These models are examined giving attention to their origin and implications and include: The Action desire interest attention (AIDA) Model The Hierarchy-of-Effects Model -

Price changes, what will be the reaction of a buyer about this price change...

what will be the reaction of a buyer about this price changes?

Explain the conceptual and empirical research, Explain the Conceptual and E...

Explain the Conceptual and Empirical Research Conceptual research is associated to some abstract ideas of theory. It is normally used by thinkers and philosophers to develop n

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd