This level is fixed below minimum level. If the stock reaches this level an immediate action must be taken by the company in respect of getting supply. This level indicates a panic situation for the company as it has to make purchases in a rush which may involve higher costs.
What are the different types of LC?
Explain what are the advantages of a LC to an exporter?
Tell me what are bank guarantees? How do they work?
What are the different parties involved in a LC?
Explain what is non-fund based lending?
Tell me in what form can a bank disburse the amount of assistance it has extended to a company?
What is letter of credit (LC)?
What are the advantages of commercial papers?
What are the disadvantages of commercial papers?
Tell me how is the amount of assistance that a bank can provide for your working capital calculated?
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