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Tip of the Day Borrow No More Than 30% of Your Available Credit

Borrow No More Than 30% of Your Available Credit - You should borrow no more than 30% of your available credit each month if you wish to keep your credit...

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Trade Credit

Trade Credit – (TC), A tool for building a solid, positive and rewarding financial ‘record’. Establishing trade credit builds credit-worthiness, credit-referrals and favourable ‘partnerships’ that tend to showcase fiscal responsibility. Doing business with, ordering products and services, receiving invoices for that (in effect the sellers are extending credit to you and your business), for a period of time, in trust and good faith, builds strong ties and good fiscal reputation. Customer orders and invoices are good examples of the nuts and bolts of this process. It states terms of payment and agreement to pay implied upon receipt of goods and invoice. (15-45 days to pay) . Non-payment of trade credit can lead to (i) additional charges added to the account, (ii) temporary suspensions, (iii) revoking of any credit privileges. For good paying consumers there might be a line of revolving credit established, with credit limits based on the credit rating of the client, pending that (a) minimum monthly payment is received on time. (b)finance charges are paid along with the principle balance.

 

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Definition of the Day Exchange Traded Note

Exchange Traded Note - An exchange traded note is also known as an ETN. This is a type of security debt that combines features of a bond and feature of an exchange traded fund. Exchange traded notes can be traded on the NSE, and other such exchanges, but can be...

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