Merchant Finance Corporation

A Standby Letter of Credit is written obligations issued by a bank on behalf of a buyer to pay a certain amount of money to the seller during a business transaction. It is essential to remember that insurance standby letters of credit are applicable when the issuing bank is unsure regarding the payment. In this article, we will discuss standby letters of credit. So let's start. What is the purpose of the standby letter of credit? The standby letters fulfill the same goal as a bank guarantee: it can be paid upon the first demand without any objection based on the underlying transaction between buyer and seller. It is totally upon the seller who can decide whether to consider a standby letter of credit. What are the types of standby letters of credit? (1) Performance Standby.   This instrument helps to execute an obligation to perform to pay money thereby including the purpose of managing the losses that arise because of the defaulter in completion of underlying task. (2) Advance Pay...

Documents against Payment (DP/DAP) with  Merchant Finance and Guarantee Corporation (MFG)  in Thailand are a foreign exchange payment phrase.  It depends on an instrument known as bill of exchange or draught, commonly used in foreign trade. In this time, the documents under consignment are shipped to the purchaser only when the purchaser's bank collects payment of the products. The supplier ships the items and submits shipping documentation to the Bank importers with orders to release the importer's documents against payment , if the importer has to pay the exporter whenever the documents are issued from the Bank.   Only after the importer has paid the bill will the receiving bank hand over the shipping papers, such as the title document. This is document against payment , in Thailand Corporation, transaction is very common. Nowadays, through this payment system, general individuals are purchasing items. In this scheme, only on payment of the g...