Banking

What is a Bank Guarantee? A bank guarantee is a sort of financial assurance given by a bank to a third party (referred to as the “beneficiary”) on behalf of a client (referred to as the “principal”) that, in the event, the principal is unable to do so, the bank would satisfy any financial commitments […]

What is Bank Guarantee? A bank guarantee is a specific financial instrument that a bank issues on behalf of a client, a firm. A bank guarantee’s main function is to ensure that a client will pay their debts to a third party, such as a contractor or supplier. This means that if the customer is

What is Bank Guarantee? A bank guarantee is a contract between a bank and a customer that provides financial security for the customer in case of non-performance or non-payment of a transaction. A bank provides the guarantee on behalf of its customer, referred to as the “guarantor.” The contract is a form of credit issued

What is Private Equity? Private equity is a type of investment in which capital is invested in private companies or firms not listed on a public stock exchange. Private equity firms acquire controlling stakes in these companies and work to improve their operations and financial performance to generate a profit when the firms are eventually

What is an Overdraft? An overdraft is a short-term credit that a bank grants to account holders against provided checks exceeding the amount of cash available in the account. In an overdraft, excess cash is withdrawn instead of money available in a current account. It is a form of credit or short-term loan granted by

What is Overdraft? Overdraft is a type of personal line of Credit. When you have an Overdraft protection attached to your bank account, you can spend more money than the balance in your account. Banks charge you each time you borrow on your Overdraft. Borrowers are also charged an annual interest rate. Suppose you need

What is Loan? A loan is an amount borrowed from a lender and paid back in installments, with interest. The borrower’s commitment to pay back the loan is in a series of regular installments over time or all at once. The lender may be a bank, credit union, or other financial institution. The borrower must

What is Loan? A loan is a type of financial assistance that a bank, credit union provide or other financial institution. It is an amount of money that is lent to a person or a business, with interest, over a certain length of time. Many different types of loans are available, including personal, home, auto,

What is Internet Banking? Internet banking is a banking service provided by a financial institution that allows its customers to conduct various financial transactions via the internet. It is also known as online, electronic, or internet banking. It is convenient for customers to access their bank accounts, make payments, transfer money, and manage their finances.

What is CD? A CD is a financial instrument issued by a bank or other financial institution. It is a type of savings account that pays a fixed rate of return for a pre-determined period. CDs are FDIC insured and are considered a low-risk investment option. CDs are used as a safe way to save

What is a Bank Guarantee? An assurance between two external parties, a buyer or a seller, in the form of a contract that the bank provides as a security for an applicant or beneficiary, is called a bank guarantee. It acts as a risk management tool for the beneficiary or applicant because if the applicant

What is ATM Card? An ATM card is also referred to as a payment card, ATM card is issued by the bank for the customer to access their bank accounts via (ATMs) automated teller machines to make necessary transactions. ATM cards are sized plastic cards and have a magnetic stripe, achieved on the card and

What is ACH? The Automated Clearing House (ACH) is a monetary network that facilitates online payments and bank transactions. Installments sometimes referred to those as “direct payments,” are a method of transferring funds from one bank account to another without the need for paper checks, bank card systems, electronic payments, or currency. Clients who engage a company

What is ACH? During  the 1970s, the United Nations of America devised a billing system based on an interconnected network to enable fast payment while drastically reducing the need for paper checks and invoices. The technique was gradually adopted by other economies and evolved into an electronically aided settlement mechanism. The ACH  stands for Automated Clearing House, also

What is Accounts Payable? In every organisation, Accounts Payable is a standard transaction that takes place. Regular payment for goods, raw materials, and services are not possible in large corporations because of the nature of their operations. All of these payments are made following the organisation’s billing schedule. Generally speaking, Accounts Payable in General Ledger