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What is Types of Non-Fund Based Facilities about?

Non-fund-based facilities are financial instruments that provide guarantees or commitments from banks without direct cash disbursement, aiding businesses in managing trade and financial risks. Key types include Bank Guarantees, Letters of Credit, Deferred Payment Guarantees, and Letters of Comfort, each serving specific purposes in trade and contract execution. These facilities enhance business credibility, support trade, reduce financial risks, and improve cash flow management.

Author

harshitpandey20668

Language

EN