Question

Distinguish between bank credit and trade credit difference only

Answer 1

Banks support international trade through a wide range of products that help their customers manage their international payments and associated risks, and provide needed working capital. These include products like Letters of Credit, specific trade loans tied to letters of credit, supply chain finance, factoring, invoice discounting, etc.

include products like Letters of Credit, specific trade loans tied to letters of credit, supply chain finance, factoring, invoice discounting, etc.Trade Credit is inter-firm trade credit between buyers and sellers. Banks tend to refer to this as open account transactions, where goods are shipped in advance of payment, and cash-in-advance transactions, where payment is made before shipment.

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Answer 2

Answer:

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• Banks support international trade through a wide range of products that help their customers manage their international payments and associated risks, and provide needed working capital. These include products like Letters of Credit, specific trade loans tied to letters of credit, supply chain finance, factoring, invoice discounting, etc.

• include products like Letters of Credit, specific trade loans tied to letters of credit, supply chain finance, factoring, invoice discounting, etc.Trade Credit is inter-firm trade credit between buyers and sellers. Banks tend to refer to this as open account transactions, where goods are shipped in advance of payment, and cash-in-advance transactions, where payment is made before shipment.

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