TradeCredebt is a prominent international trade and ship finance company providing impeccable services to all sorts of international trade. We are a reliable finance partner that provides comprehensive ship and vessel chartering, and export-import finance solutions.
Ship Chartering Business: 7 Tips to Excel in Your Business. When you are working in ship chartering, you need to build a profile that can help you get positive results.
You need to be strategic in what you do and need to have a perfect plan to execute things. The logistical operations in international trade are very complex, and there is no scope for errors. In the case of international trade, even a difference of few cents in the price of a commodity can bring around a great hike in the final price. There are a lot of challenges in the vessel chartering business apart from the huge profits, and here in this post, we will be looking at tips that you can follow to excel in what you do. 1. Just like in any other business getting into a commercial transaction, here too you need to start by evaluating the history of professional expertise of the shipowner. The ship charterer should also invest in some time to check all the information you have gathered so far with the signed charter party. Letters of credit vs Bank guarantees The Definition and the Key differences. A Bank guarantee or a letter of credit are very similar.
Both are essentially the assurance that borrowers will repay a debt to third parties irrespective of their financial circumstances. If borrowers are unable to pay, they must still repay their lenders. Both sources of finance facilitate trade by backing the borrower financially. They significantly reduce transaction risks and speed up the trade process. However, there are underlying differences between the two. Letters of credit are more widely used in international trade. Bank Guarantee A lending institution makes a promise that a bank will pay on behalf of a debtor if they are unable to pay.
A Bank guarantee fundamentally protects both parties from credit risk. For example, a construction company enters a contract with a cement supplier. Trade Credit Finance: The Advantages and Disadvantages. Trade credit finance is the term for a system established between the vendor and buyer.
It is where the buyer doesn’t have to pay immediately and the. Vendor specifies when the debt must be paid. It is important to know about trade credit and its advantages and disadvantages. This will provide an insight into trade finance well what it entails. Difference Between CIF and FOB and What Should You Buy. When carrying out international trade it is important to have a clear idea of the different terms used in the movement of goods.
The shipment of goods is done using legal agreements. The two commonly used agreement models are CIF (Cost, insurance and freight) and FOB (free on board). Each agreement clearly defines who will be responsible for the goods while they are moved from a destination to another. It also specifies the point at which the responsibility is passed from one party to another. What is CIF? “Cost, insurance and freight” or CIF is primarily the responsibility of the seller until the cargo has been delivered. This means that sellers are responsible for the risks related to shipping. What is FOB? “Free on board,” or FOB, or “freight on board“- is divided into two parts: ‘Destination or Origin’ and ‘Prepaid or Collect’. FOB Origin is generally used where the responsibility of the cargo will be taken by the buyer once it leaves the seller. Why buy CIF? Why buy FOB? Summary. International Trade: Definition With Overview And Examples.
International trade The licensed exchange of goods and services across the borders is called international trade.
It establishes economic links between different nations and involves the trading of consumer goods like clothing, automobiles, electronic appliances, and capital goods like machinery, and raw materials. Trade is an ancient practice having traces in the history of this world that involved barter of goods in the old times and now occurs with modern financial banking systems.
International trade is facilitated by the central banks and private banking systems of involved nations and promotes better standards of living. The practice of international trade is an organized process and works according to governmental policies and various international trade agreements. International trade involves 3 different kinds of trade import, export, and entrepot. Understand these terms with examples of international trade using labels country A, country B, and country C. Export Import Entrepot Cars.