Importance of Work-Life Flexibility

Human Resource Management

Work Life Balance and Wellness in Organizations

Human Resource Management

What is Work Life Flexibility?

Modern Management Concepts

The Relevance of Stakeholder Management in International Business Context

International Business

Why Business Models Matter in Business?

Modern Management Concepts

Syndicated Loan – Syndicated Lending Process

Syndicated form of raising finance came into existence when the size of individual loans got bigger and banks thought fit to share the risks with other lenders. The concept of sole bankers was no longer feasible when a large amount of funding was involved. Moreover the syndicated mode of financing has two important features, namely, amount (risks) and administrative saving (documentation to be one principal lender). There will be one principal lender who will finance and the other participant lenders in the syndicate will share the risks in a predetermined share. Governments of countries as well as the corporate sector are tapped the syndicated loan route. As the size of the individual loans increased, individual banks found it difficult to take the risk single handed-regulatory authorities in most countries limit the size of the individual exposures. Hence the practice of inviting other banks to participate in the loan, to form Continue reading

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Types of Letters of Credit

A Letter of Credit (L/C) or documentary credit is an undertaking issued by a bank, on behalf of the buyer (the importer), to the seller (exporter), to pay for the goods and services, provided that the seller presents documents, which comply with the terms and conditions of the letter of credit. Letters of credit are classified in to various categories on the basis of their nature which are used depending on the needs of the importer/opener. Revocable Letter of Credit: A revocable L/C is one that can be amended or cancelled at anytime by the issuing bank without the notice or reference to the beneficiary, consequently, revocable credit does not constitute a legally binding undertaking between the banks and the beneficiary as it can be modified or cancelled at any time without notice to the Beneficiary. Irrevocable Letter of Credit: An irrevocable L/C constitutes a definite undertaking of the issuing Continue reading

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Payment Terms in International Trade: Open Account, Barter Trade and Bank Guarentee

Open Account From the seller’s point of view the Open Account is the most unsatisfactory international business payment system. Under this payment system the arrangement is that the buyer pays at the end of an agreed period. The seller consigns the goods directly to the buyer or to his order and documents pertaining to the goods are sent directly to the buyer enabling him to take delivery of the goods. Under this payment system the seller after having supplied goods is purely at the mercy of the buyer. Such a payment is normally in those trading arrangements requiring a high degree or trust between the buyer and the seller and a regular continuous business relationship between the two parties. Advantage of this payment system, is that since there is no involvement of a bank, there is less paper work and consequently lesser costs. This system is more beneficial to a Continue reading

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Bills for Collection

Under Bills for Collection method of international trade payments, since a bank acts as an intermediary, the seller does not have to depend on the buyer only. But here the bank’s role is only in the process of routing the documents of transport/title along with other documents. The seller draws documents in terms of the contract that it has entered into with the buyer, hands over those documents to the bank with clear instructions as to the mode of collection- whether goods are to be delivered against payment or against acceptance of documents and a bill of exchange on the basis of which he can get payment after due date of exchange and if for instance that bill is not paid for some reason the seller can fall back on the Bill of Exchange law and can take action under that law to get payment. While the buyer does not Continue reading

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Regulatory Documents used in Export/Import Documentation

Regulatory documents are otherwise called as Official documents, because most of these documents are required for compliance of regulations of either the exporter’s country or the importer’s country. 1. Export Declaration Forms As per Indian Exchange Control Regulations, details of all goods (except certain exempted categories) by whatever means exported from India, are required to be declared on certain specified forms. These forms are known as Export Declaration Forms. These forms are evolved by the Reserve Bank of India to ensure that the value of all the goods exported from India is declared and the foreign exchange due there is repatriated to India. In export trade, the goods leave under the supervision of one agency (Customs/Post Office) and proceeds thereof are received through another agency (banks, etc.) These export declaration forms are so designed that they can have an effective check over the cycle of movement of goods out of Continue reading

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Transport Documents used in International Trade

In international trade, the goods move from the warehouse of the exporter to the warehouse of the importer. The goods may move by land water or air or a combination of one or more of these modes. In international trade, such transport documents are more in number and it is very important to know the significance of each type of document and its nomenclature, etc. One of the important aspects to be remembered with regard to any transport document is that it must show the name of the carrier. 1. Bill of Lading This is a transport document, which represents the movement of goods by water. A Bill of Lading is a formal receipt given by a ship owner or their authorized agents stating that the goods mentioned therein (quantity, quality, description etc.) are shipped on a specified date and vessel and are deliverable to the person mentioned therein or Continue reading

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