Trade FInance

Which of the following actions should the financial executive take to resolve the discrepancy in the transport documents?

• Request a correction to the bill of lading

• Obtain additional documentation to support the correct quantity of goods shipped

• Seek legal advice to dispute the discrepancy

• Notify the buyer and seller of the discrepancy

What is Account Receivable Discounting primarily used for?

• Long-term investments

• Increasing product prices

• Deflating client’s receivables on their balance sheet

• Reducing employee efficiency

What does Payables Finance involve in Buyer-Led Finance?

• Accessing finance through Receivables Purchase

• Direct loans to buyers without involving suppliers

• Immediate full payment of receivables

• Extending payment terms without financial benefits

What is Import Discounting primarily used for?

• Extending the maturity of bills

• Speeding up cash flow movement

• Long-term investments

• Enhancing credit score

What is essential for the bank to proceed with discounting in Seller-Led Finance?

• A high credit score of the buyer

• Seller's agreement to extend payment terms

• Buyer's direct payment to the seller

• Verification of invoice and payment on due date

We are approaching the end of the year, Company ‘A’ is supplying dairy products worth EGP 1M to Carrefour on a credit basis of 90 days from the invoice date.

The supplier is keen on maintaining his debt ratio for end-of-year closure but is still in need of urgent financing to meet his first export purchase order.

Being the supplier’s treasurer, what would be your best option for meeting the company’s financial needs?