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Activity:
45 views;
last activity : 07 06 2010 20:18:09 +0000
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3rd Party Logistics Financing
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Commodity Based Funding:
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Funding for Automotive Component Industry:
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Letter of Credit Program
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Today logistics support has reached new avenues. Logistics companies take care of end-to-end goods support. The same can be funded by funding the first chain & recovering from the last, tying up the financing needs of the entire chain through a single window.
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It’s a commodity based funding line. Under this product banks offer processors, traders, market intermediaries and farmers for funding against their stock of agricultural commodities. They have service providers in important commodity cluster to reach the customers whichever corner they are in. |
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Indian automotive industry is truly on the fast lane and so its ancillary activities. Banks offer a program line of credit facility to manufacturers of auto components and vendor of Original Equipment Manufacturers (OEMs). |
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The banks provide for opening inland and import letter of credit facility with a collateral margin upto a maximum of 50%. It is a line of credit for working capital purpose only and purchase of any Capital item is restricted. |
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yes i do agree the article is nice but then what is the new innovative products the banks should come up with that Mr. Iyer is talking about can anybody throw some light on that matter. |
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