Trade Finance

The term Invoice Discounting is often also referred to as
1) Bill Discounting
2) Purchase Bill Discounting
3) Receivables Discounting
4) Receivable Finance
Invoice or Bill Discounting or Purchasing Bills. ... Bill discounting is an arrangement whereby the seller recovers an amount of sales bill from the Bank or financial intermediaries (NBFC) before it is due date.
Accounts receivable is any money of your customers/ client owes you for goods or services they purchased from you in the past. This money is typically collected after 30, 60 90 or 120 days, and is recorded as an asset on your company’s balance sheet. Prime Finance assist seller by getting their client invoice paid up to 90% of the invoice amount.

The term Supplier Payment Finance is often also referred to as
1) Account Payables finance
2) Vendor Finance
3) Supplier Chain Finance
4) Reverse Factoring
Supplier Payment financing is a fundamental of supply chain financing and plays a vital role to increase the cash flow and operations of company. It contributes companies with credit facilities to buy goods, enabling them to expand the business. This solution is used by manufacturing companies, wholesale trader & product distributors.
The buyer will pay the principal amount and other charges owed at the invoice maturity/due date or at another agreed upon due date directly to the finance provider.

1) Sight Letter of Credit
2) Usance Letter of Credit
A Letter of credit (LC) is a security or assurance of payment by an importer’s (Buyer) bank or Finance Institute made to the exporter (Seller). The assurance in the letter of credit is contingent on the exporter meeting the terms and conditions defined in the letter of credit. In most cases, the conditions cover the exporter providing certain evidence like a bill of lading, Insurance, Packing List, Commercial Invoice, Certificate of Origin etc. justifying they delivered the correct goods or performed the agreed upon services.