Factoring And Security Agreement Limited Recourse: Fill & Download for Free

When it comes to mobile app development, choosing who will work on your project is a very crucial decision to make. What kind of team will work on your project will decide how your app will operate and what you can expect out of your app – its ability to make money or its competitiveness? Today, you can either choose to hire remote freelance developers or a dedicated development team to satisfy your project needs.Freelance developer or freelancersWhen you are planning to hire freelancers for the job, the most important thing to remember is to achieve proper communication and cooperation. You need to be sure that the freelance developer whom you have chosen for the job is professional and reliable. Some of the factors which you need to take into consideration when selecting freelance developers are:supervisionMost freelancing is done remotely, there's truly no way to know whether or not 2 of those 10 hours your freelancer billed were spent working hard or scrolling through Instagram and watching YouTube videos. This isn't to say all, or even most, freelancers do this, but without supervision, immediate motivation often takes a backseat to leisure.Easy and effective communicationMiscommunication can happen in any team, but when working with freelancers, especially those who work remotely, information and instructions are more likely to be misunderstood.Miscommunication issues happen between the client and the freelance developer due to a number of reasons. These include:Lack of project details given to the freelancer.Lack of communication and collaboration from one or both sides.Unclear timeline.Little to no description of expected output from one or both sides.These and many other factors can contribute to poor communication as well as a poor overall experience and result for both sides.Quality portfolioBecause one of the main advantages of hiring freelancers is the speed, an extensive, thorough interview process to vet freelancers doesn't tend to take place for entrepreneurs. As a result, a freelancer's resume and portfolio are sometimes breezed through by whoever is in charge of hiring and onboarding them relative to the immense amount of time dedicated to ensuring a potential full-time hire is a good fit or not.SecurityTransparency and security should be a top priority for startup founders working with remote freelance employees. According to the Risk Value 2018 report, around 60 percent of respondents named temporary employees and contractors as the weakest security link within the organization.No wonder, as freelancers you work with have access to your company's systems, data repositories, and process documents.Remote cooperation often limits your ability to control the entire process. Therefore, it's important to set clear security guidelines you want your freelancer to follow, as well as to conduct regular checks to ensure your assets are kept safe.Lack of Team SpiritFreelancers, especially developer freelancers don’t make a good team.Developers with similar skills will not be comfortable working with each other because they consider their share of work has gone to the other guy.Disclosure IssuesWorking with contractors means giving outside parties access to sensitive information about your products, services, or business partners. Freelancers generally work with a wide variety of businesses. This could mean someone working on your projects today is on staff with a competitor a few weeks later.A non-disclosure agreement (NDA) will likely prevent your freelancers from sharing any information they learn in the course of working with you, while also giving you legal recourse if you find this information has been disclosed.Wrapping-UpIf you are not able to find a freelancer as per your project needs, it is always safe to go for a full-time dedicated development team. Freelancers may seem to be easy and cheaper at first, but later, they will end up consuming a major part of your budget through iterations. The development team is safe; they are experienced and have the expertise to add value to your brand.

SOURCES AND INSTRUMENTS FOR FINANCIAL TRADE1. Sources of trade finance2. Instruments of trade finance3. Impediments/Challenges in accessing trade financeFinancing trade is different than regular bank lending. It includes innovative financial products and services that assist importers and exporters fulfill their financing needs. Trade Finance is a source of working capital for many traders in need of credit lines to purchase, process or manufacture products for sale in the future. These financial instruments can be important for individual traders and firms trading internationally, because it can shape competitiveness on their terms of trade contracts. As a market expands so is the need for financing instruments that facilitate transactions across borders.Any nation that does not have access to financial instruments can be considered blocked from trade. Importers or exporters not having access to trade finance, have limited opportunities to offer competitive terms to their vendors or buyers such as instruments of credit and payment assurance. Exporters will also have difficulties penetrating a market, because importer may prefer to buy on open account, or on deferred terms, the exporter may not be in position to accept/offer such terms if trade finance is unavailable.Commercial Banks are the main source of trade finance.1. Provide pre-export financing (Term Loans)2. Help in the collection process3. Issue and confirm letters of credit4. Book acceptance and discounting drafts5. Offer fee-based services such as credit and country information on buyers.6. Taking foreign exchange risks (spot, forward, swap and so on)7. Taking market risks (options, futures)8. Discounting documents under letters of credit9. Advance under red clause letters of credit10. Structured FinanceFor example a supplier can offer credit to a buyer by releasing goods against bills of exchange, by which a seller can pay at a specified future date.Specialized trading institutions purchase from exporters receivables without recourse at a discounted rate to allow them access to financing before maturity of the bill. In this case the receivable becomes a tradable securityGovernments and other institutions like World Bank, regional bank, community bank can be good source of trade finance especially in less developed economies where financial markets and money markets are not easily available.Such financial facilitation include:1. Establish scheme of guarantees to support exporters2. Establish floating line of credit to support imports for and exports from specific sectors3. Establish guarantees schemes for small companies or micro group4. Support trade facilitation policies, e.g. tax deferral for export/import on extended termsSources of Trade Finance: Government and other related institutions1. Letters of Credit (Documentary Credit)2. Bank Guarantees3. Pre and Post shipment finance loan facilities4. Buyers and Sellers credit5. Bills Acceptance6. Structured Finance7. Leasing8. Factoring and Forfeiting9. Counter-tradeA Letter of Credit is a document issued by a bank (issuing bank) stating its commitment to pay a seller (beneficiary) a stated amount of money on behalf of a buyer so long as the seller presents specific documents and conditions.Letters of Credit can be issued as “Revocable” or “Irrevocable” form and are either “Unconfirmed” or “Confirmed”, payable at “Sight” or at a deferred period “Use”Letters of Credit can also be special types, namely: Revolving letters of credit, Standby Letter of Credit (SBLC), Red Clause letters of credit, Transferable letter of credit, and Back-to-back letters of credit.Letters of credit issued against L/C facility allows importer to delay payments to exporter, thus easing cash flow problems and interest expenses. It allows supplier to access credit against presentation of documents at the counters of negotiating bank without waiting for goods to reach the buyer. It allows buyer to obtain credit terms from a seller under active period or differed L/C terms whereby the bank books acceptance for payment of bills to be made at future agreed date (maturity date).Supplier can discount documents and obtain credit before due date.Red clause Letters of credit allows exporter to obtain pre-export advance paymentA Letter of guarantee is a written promise issued by the Bank to compensate the beneficiary (third party, local or foreign) in the event that the obligor (customer) fails to honor its obligations in accordance with the terms and conditions of the guarantee/agreement/contract. Types include Bid, Custom, Payment, Performance, Advance payment, Government export guarantees etc.Advance payment guarantee allows its beneficiary to access advance payments to facilitate procurement or production of goods for delivery to the intended partyCustom Bonds allow a buyer or seller to postpone payment of tax until the goods are soldCustoms Bonds for Temporary Transit facilitates movement of goods on transit or sent abroad for a trade fair, or goods, which are imported with intention of re-exportation without paying related custom duties.Structured finance refers to transferring risks in trade financing from parties less able to bear those risks to those better equipped to bear them in a manner that ensures automatic reimbursement of advances from the underlying assets.Some examples of structured finance include:1. Inventory/Ware house financing2. Receivable financingLeasingFactoring and forfeiting are both forms of receivables discountingA specialized financial firm pays up-front for the amounts due to them by their customers.While forfeiting is mostly used for international transactions, factoring is mostly used for domestic trade. Factoring is the assignment to a third party receivables from its customers for a discounted factor (fee) in different ways:Advance-based factoringMaturity-based factoringCollection-based factoringForfeiting is a term generally used to denote the purchase of obligations falling due at some future date, from deliveries of goods and services-mostly export transactions-without recourse to any previous holder of the obligation.In a forfeiting transaction, an exporter/seller remits guaranteed debt, which results from a sale on credit, to a forfeiting company.The forfeiting company pays a seller up-front for the face value of the debt minus a discounted factor.The debt has to be enhanced through guarantee from a bank or other financially strong institution.Once the debt has been accepted by the forfeit er, the exporter is no longer liable for a failure of the buyer to pay-the forfeit er, except where there was fraudulent transaction.Counter-trade involves the exchange of goods and/or services as a condition of purchase, or as financing of purchases as in bartering.Under such arrangements valued goods are exchanged at an agreed value without cash or credit terms.This method of trade is particularly valuable in markets where there is a shortage of foreign exchange reserves, where the currency is not freely convertible, or where there is difficulty in obtaining export credit. It is method for a range of reciprocal or compensatory trade mechanisms including barter, compensation, counter-purchase, buyback- offset, switch trading and tolling.

Finance trade & loan agreement methodsBarter Trade is not a very viable proposition for the 21st Century as markets, international finances currency valuation take place in commodity exchanges where purchase point of delivery and ultimate consumer might not be in the same lane.SOURCES AND INSTRUMENTS FOR FINANCIAL TRADE1. Sources of trade finance2. Instruments of trade finance3. Impediments/Challenges in accessing trade financeFinancing trade is different than regular bank lending. It includes innovative financial products and services that assist importers and exporters fulfill their financing needs. Trade Finance is a source of working capital for many traders in need of credit lines to purchase, process or manufacture products for sale in the future. These financial instruments can be important for individual traders and firms trading internationally, because it can shape competitiveness on their terms of trade contracts. As a market expands so is the need for financing instruments that facilitate transactions across borders.Any nation that does not have access to financial instruments can be considered blocked from trade. Importers or exporters not having access to trade finance, have limited opportunities to offer competitive terms to their vendors or buyers such as instruments of credit and payment assurance. Exporters will also have difficulties penetrating a market, because importer may prefer to buy on open account, or on deferred terms, the exporter may not be in position to accept/offer such terms if trade finance is unavailable.Commercial Banks are the main source of trade finance.1. Provide pre-export financing (Term Loans)2. Help in the collection process3. Issue and confirm letters of credit4. Book acceptance and discounting drafts5. Offer fee-based services such as credit and country information on buyers.6. Taking foreign exchange risks (spot, forward, swap and so on)7. Taking market risks (options, futures)8. Discounting documents under letters of credit9. Advance under red clause letters of credit10. Structured FinanceFor example a supplier can offer credit to a buyer by releasing goods against bills of exchange, by which a seller can pay at a specified future date.Specialized trading institutions purchase from exporters receivables without recourse at a discounted rate to allow them access to financing before maturity of the bill. In this case the receivable becomes a tradable securityGovernments and other institutions like World Bank, regional bank, community bank can be good source of trade finance especially in less developed economies where financial markets and money markets are not easily available.Such financial facilitation include:1. Establish scheme of guarantees to support exporters2. Establish floating line of credit to support imports for and exports from specific sectors3. Establish guarantees schemes for small companies or micro group4. Support trade facilitation policies, e.g. tax deferral for export/import on extended termsSources of Trade Finance: Government and other related institutions1. Letters of Credit (Documentary Credit)2. Bank Guarantees3. Pre and Post shipment finance loan facilities4. Buyers and Sellers credit5. Bills Acceptance6. Structured Finance7. Leasing8. Factoring and Forfeiting9. Counter-tradeA Letter of Credit is a document issued by a bank (issuing bank) stating its commitment to pay a seller (beneficiary) a stated amount of money on behalf of a buyer so long as the seller presents specific documents and conditions.Letters of Credit can be issued as “Revocable” or “Irrevocable” form and are either “Unconfirmed” or “Confirmed”, payable at “Sight” or at a deferred period “Use”Letters of Credit can also be special types, namely: Revolving letters of credit, Standby Letter of Credit (SBLC), Red Clause letters of credit, Transferable letter of credit, and Back-to-back letters of credit.Letters of credit issued against L/C facility allows importer to delay payments to exporter, thus easing cash flow problems and interest expenses. It allows supplier to access credit against presentation of documents at the counters of negotiating bank without waiting for goods to reach the buyer. It allows buyer to obtain credit terms from a seller under active period or differed L/C terms whereby the bank books acceptance for payment of bills to be made at future agreed date (maturity date).Supplier can discount documents and obtain credit before due date.Red clause Letters of credit allows exporter to obtain pre-export advance paymentA Letter of guarantee is a written promise issued by the Bank to compensate the beneficiary (third party, local or foreign) in the event that the obligor (customer) fails to honor its obligations in accordance with the terms and conditions of the guarantee/agreement/contract. Types include Bid, Custom, Payment, Performance, Advance payment, Government export guarantees etc.Advance payment guarantee allows its beneficiary to access advance payments to facilitate procurement or production of goods for delivery to the intended partyCustom Bonds allow a buyer or seller to postpone payment of tax until the goods are soldCustoms Bonds for Temporary Transit facilitates movement of goods on transit or sent abroad for a trade fair, or goods, which are imported with intention of re-exportation without paying related custom duties.Structured finance refers to transferring risks in trade financing from parties less able to bear those risks to those better equipped to bear them in a manner that ensures automatic reimbursement of advances from the underlying assets.Some examples of structured finance include:1. Inventory/Ware house financing2. Receivable financingLeasingFactoring and forfeiting are both forms of receivables discountingA specialized financial firm pays up-front for the amounts due to them by their customers.While forfeiting is mostly used for international transactions, factoring is mostly used for domestic trade. Factoring is the assignment to a third party receivables from its customers for a discounted factor (fee) in different ways:Advance-based factoringMaturity-based factoringCollection-based factoringForfeiting is a term generally used to denote the purchase of obligations falling due at some future date, from deliveries of goods and services-mostly export transactions-without recourse to any previous holder of the obligation.In a forfeiting transaction, an exporter/seller remits guaranteed debt, which results from a sale on credit, to a forfeiting company.The forfeiting company pays a seller up-front for the face value of the debt minus a discounted factor.The debt has to be enhanced through guarantee from a bank or other financially strong institution.Once the debt has been accepted by the forfeit er, the exporter is no longer liable for a failure of the buyer to pay-the forfeit er, except where there was fraudulent transaction.Counter-trade involves the exchange of goods and/or services as a condition of purchase, or as financing of purchases as in bartering.Under such arrangements valued goods are exchanged at an agreed value without cash or credit terms.This method of trade is particularly valuable in markets where there is a shortage of foreign exchange reserves, where the currency is not freely convertible, or where there is difficulty in obtaining export credit. It is method for a range of reciprocal or compensatory trade mechanisms including barter, compensation, counter-purchase, buyback- offset, switch trading and tolling.