Supply Chain Finance In Growing Demand The credit crunch has demonstrated which banks are truly committed to developing supply chain finance solutions. By Anita Hawser Few market segments within financial services have emerged unscathed from the recent credit crisis, and supply chain financing is no exception. Twelve to 18 months ago banks were eager to talk about their investments in technology that enabled them to provide early payment to suppliers based on approved payables from the buyer.
In many situations however, such as buying goods from shops, you are able to cancel the contract and get your money back. Under certain circumstances, you are given the right to cancel over a specific period of time. This is referred to Pre shipment finace your cooling off period and the duration of this period depends on what you bought and the manner in which you bought it.
The following are situations in which the cooling off period applies Buying online from shops or suppliers The purchase of goods and services over the internet, by phone or by mail order generally is subject to the Distance Selling Regulations.
One of the most important implications of these regulations is a cooling off period of 7 days during which you have the right to cancel.
You must provide notice of cancellation in writing and it must be posted to, left at, faxed or emailed to the business address of the supplier, and you must ensure this is done no later than 7 working days after receipt of goods.
Contracts for financial products sold by distance means are subject to different rules, see below for more on this.
Something else worth mentioning is that the supplier must have sent you written confirmation of your order no later than the time of delivery of the product or performance of the service. If they did not, then your 7 day cooling off period will not begin until they do, and may be extended by a further 3 months.
If you have commissioned a service under a distance selling contract and the work Pre shipment finace before the end of the 7 days cancellation period, then you must give up your right to cancel, but this must be clearly communicated and with your express agreement.
Does the right to cancel apply for all goods bought by mail order?
There are obvious exceptions and you will not have the right to cancel with the purchase of the following goods: These regulations give you a cooling off period of 7 calendar days during which time you have the right to cancel and get a full refund.
This may include any of the following: For this reason, the Timeshare Act gives you the benefit of a cooling off period of 14 days if contracts are signed in the UK.
If you sign abroad you will be subject to local laws, although most European member states have a cooling off period of 10 days. Check before you sign, although the company must provide you with the same notification of your rights as doorstep sellers.
Credit Agreements You will only benefit from a cooling off period if the credit agreement was made in one of the following ways: For contracts which fall under 2 and 3you benefit from a 14 day cooling off period.
Unlike the cooling off period for goods bought under the Distance Selling Regulations DSRsthe creditor may make a reasonable charge for any service such as insurance cover which was operating during this time. There are specific guidelines on how you should cancel the contract, which must be notified to you by the creditor before or immediately after the contract is made.
If the creditor does not make this information available to you, then your cooling off period will not begin until this happens. Financial products and services Financial products including banking, credit, insurance, personal pensions and investments, sold by distance means are subject to a 14 day cooling off period this is 30 days in the case of life insurance and personal pensions.
This includes renewals for insurance where the agreement has been sent by post. This 14 day cooling off period also covers situations where you bought a financial product from an intermediary or a broker, even if it was discussed and signed face to face.
You must be sure to follow correct procedure for cancellation see below. The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had.
If you have any related credit agreements, these will also be cancelled. Extended warranties These are effectively insurance policies and have a 45 day cancellation period with the right to a full refund if you have not made a claim in this time.
See our guide to extended warranties for more in depth information. If you have not, the contract is legally unenforceable.
This notice, which cannot be in the form of small print, or otherwise disguised, must also provide a cancellation form and advise you on how and to whom a notice of cancellation is to be made. You can use the cancellation form provided or a simple written notice, as long as it is clear of your intentions.
For this reason, it is always advisable to send it recorded delivery. Refunds The supplier must reimburse you within 30 days of cancellation, without charge, unless you have been informed that you will be liable for the cost of returning the goods.The talk about supply chain finance and in particular new ways of financing commercial transactions, be they international or domestic, has mostly just been that, talk.
Almost all of the developments we hear around vendors, networks, and early payment revolve around post shipment, approved invoice. The Small Business Dictionary defines, explains, and cross-references more than 1, key small business words, phrases, acronyms, and concepts, covering topics including small business finance, management, sales, startup, exit strategy, and growth.
Under certain circumstances, you are given the right to cancel within a specific period of time, or a cooling off period. The duration of this cooling off period depends on what you bought and the manner in . What are the types of post-shipment finance available from banks?
in terms of conditions stated in the L/C. If all documents are in order, the bank negotiates the bill and advance (post shipment finance) is granted to the exporter. allow the benefit of the agreed rate of interest on such advances, both at the pre-shipment stage and at.
Pre-shipment finance is arranged on a needs basis and is only granted to an exporter who has a confirmed Export Order/Letter of Credit (LC). Post-shipment Finance ADCB India provides financing after shipment when you need to generate immediate cash while offering payment terms to buyers.
UniCredit Global Trade Management provides an assortment of trade finance and processing services, including pre-export and post-shipment financing and distributor and inventory financing, as well as electronic platforms for processing letters of credit, documentary credits and purchase orders.