Understanding FEDAI: Basics You Should Know The Foreign Exchange Dealers’ Association of India (FEDAI) was established in 1958 as an association of banks that deal in foreign exchange in India. Its main objective is to streamline forex operations and promote uniform practices among Authorized Dealers. FEDAI works closely with the Reserve Bank of India (RBI) […]
Working Capital Finance Working Capital Finance Definition Working Capital Finance refers to funding provided to businesses for managing their day-to-day operational expenses such as payment of wages, raw materials, electricity bills, rent, etc. It ensures that a company can maintain its liquidity and continue operations smoothly. Types of Working Capital Cash Credit (CC): A revolving
Letter of Credit (LC) – Explained Letter of Credit (LC) Definition: A Letter of Credit (LC) is a written undertaking by a bank, issued at the request of the buyer (importer/applicant), promising payment to the seller (exporter/beneficiary) on compliance with the terms specified in the credit. It is widely used in international and domestic trade
Non-Fund Based Credit Non-Fund Based Credit What is Non-Fund Based Credit? Non-fund based credit is a type of financial support provided by banks where no direct outflow of funds takes place. Instead, the bank acts as a guarantor for the customer and promises to pay a third party on the customer’s behalf in case of
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Working Capital Assessment: The Lifeblood of Business Every successful business, large or small, must master the art of working capital management. Working capital is not just an accounting term — it’s the fuel that keeps the engine running. Whether a company can meet its day-to-day expenses, pay salaries on time, and fulfill orders without delay
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