What is the back of your credit?

Reverse backward loan is a form of funding, where one letter of credit guarantees another and holds the parties in the transaction for their obligations. If it either does not complete the transaction, it offers the accreditation support and guaranteed payment. This is most commonly observed in Import-Export business and is a common tool for anonymization of transactions, as the use of back to return loan allows mediators to control the transaction. The buyer must provide a letter from his bank and send it to the bank to verify. Meanwhile, the middleman approaches the widget manufacturer to create a sale contract, and then opens a loan with a bank to prefer the supplier. One line of loan supports the other and creates a back to a back loan. Banks WPRIFE STEPS to verify the loan competence and identify any areas of interest, and the mediator must carefully structure contracts in order to avoid disproportionate risk. Once the supplier fills the order, the buyer can use the credit line to pay and start repaying with BAnkou. If there is a problem with the process, the loan on the back will be covered by supplier expenditure.

Also known as a back guarantee or a credit letter, a credit back loan provides a certainty for transactions. The use of a third party also allows you to cover identity. The supplier does not know who plays the order because the mediator supports the order with his own credit line. The buyer will not know the source of items because the mediator is responsible for delivery. This process can have advantages such as reducing the contact of the Betwuros and EEN suppliers to prevent them from concluding their own contracts.

Most large banks will deal with their backs on behalf of their clients, especially if they do business at an international level. In cases where a regular bank does not offer this service, it is possible to open a new account to start the process. This will take longer because the bank needs the customer to be ingood condition before it issues credit. As with any sales transaction, it is important to review and understand the contract before approved for delivery.