The NBFC sector is now growing as an alternative to banks in almost all over the world. Those days are Gone when people used to stand in line for hours in order to get loans from banks. The arrival of Non-Banking Finance Companies has made it easier for the common people to avail loan facilities.
The trouble-free accessibility and remote coverage make non-bank financial companies the most chosen option for borrowers these days in comparison to banks. There are several advantages to choosing NBFC over banks. Here in this article, you will know how a non-bank financial company can advantage you by offering a number of services.
Like banks, they can also offer you letters of credit:
As you know, a letter of credit is a document that guarantees the purchaser’s payment to the suppliers. Now, this can be issued by a non-bank financial company too and like banks they will also guarantee the timely and full payment to the supplier.
If the purchaser is not capable of making such a payment, the non-bank financial company will cover the full or the remaining amount on behalf of the purchaser. This mainly provides security when the seller and buyer are in different countries.
Will help you by offering Bank Guarantees
By offering a bank guarantee a NBFC can promise to cover a loss if a borrower defaults on a loan. This guarantee will allow a company to buy what it otherwise could not, assisting business growth and endorsing entrepreneurial activity. And this guarantee can be availed easily when you will consider choosing non-bank financial companies over banks.
Also attain a performance guarantee from them easily
A performance guarantee by a non-bank financial company is a promise that either a service will live up to certain expectations, or that a product will carry on performing well over a fixed time period.
In the world of business, there are several such guarantees, everyone have created in individual ways to describe the company's vow and extent of future responsibility. Sometimes, non-bank financial companies guarantee the performance of something too, mainly when appointing subcontractors.
Get advantaged by Documentary collection services
A documentary collection is a procedure with which a non-bank financial company chosen by an exporter, collects funds from the importer's bank in return of documents detailing shipped merchandise.
A documentary collection is a trade transaction in which exporters permit their NBFC to act as a collection mediator for payment of sent goods to the purchaser.
They can also help you by offering proof of funds documents
Proof of funds (POF) refers to a document or documents that show a person or entity has the aptitude and funds obtainable for a particular transaction. A non-bank financial company can offer you this.
The purpose of the proof of funds document is to make sure that the funds required to perform the transaction completely are available and lawful.
Get in touch with a well-reputed non-bank financial company
“Merchant Credit and Guarantee Corporation Limited (MCGCL)” is a well-reputed non-bank financial company. Get to know about this company more by visiting their website- merchantcreditcorp.co.
