Yakub02
Banned
Bank Business Guaranty BBG. is referred to as arrangements between between a business owner and the bank to finance wholly the business Capital requirements.
This arrangement is usually for an agreed period usually one or two years. In this process the bank will agree to pay the supplier of goods a huge amount of money which will be start up capital.
From this fund, the supplier will start supplying the business proprietor.
As the business proprietor is selling, there is arrangements of remitting the proceed of the sales to bank which must not go below and agreed rate.
As the business goes on the banks will be deducting the agreed interest rate while the business owners gives formal instructions to bank to pay certain amount to the supplier at intervals.
As this arrangement goes on the profits form the business if we'll managed should have ploughed back several times due to the fact that the business owner will not be given access to withdraw money from the bank account.
Bank is the only authorized body that can take out money from the bank account only and solely to supplier for the purpose of supplying the business owner.
This agreement if we'll managed will allow the business to have grown to the level of standing on his own to run business after the expiration of the BBG agreement.
This practice is easy and practicable for existing business owners who has apparatus on ground to do the business effectively.
The business apparatus are availability of warehouse, motor vans for selling and experienced administrative staff. This is to ensure that the money put in by bank is judiciously utilized. The bank will carry out their due diligence test .
Also the supplying company can also assist in the area providing sales representative and sales executive. This will not only give favourable results for the business owner but also allow both the bank and the supplier company to realize their lofty goals of the business
It is better for the parties involved in BBG to vale one another and give one another adequate respect and regards.
This arrangement is usually for an agreed period usually one or two years. In this process the bank will agree to pay the supplier of goods a huge amount of money which will be start up capital.
From this fund, the supplier will start supplying the business proprietor.
As the business proprietor is selling, there is arrangements of remitting the proceed of the sales to bank which must not go below and agreed rate.
As the business goes on the banks will be deducting the agreed interest rate while the business owners gives formal instructions to bank to pay certain amount to the supplier at intervals.
As this arrangement goes on the profits form the business if we'll managed should have ploughed back several times due to the fact that the business owner will not be given access to withdraw money from the bank account.
Bank is the only authorized body that can take out money from the bank account only and solely to supplier for the purpose of supplying the business owner.
This agreement if we'll managed will allow the business to have grown to the level of standing on his own to run business after the expiration of the BBG agreement.
This practice is easy and practicable for existing business owners who has apparatus on ground to do the business effectively.
The business apparatus are availability of warehouse, motor vans for selling and experienced administrative staff. This is to ensure that the money put in by bank is judiciously utilized. The bank will carry out their due diligence test .
Also the supplying company can also assist in the area providing sales representative and sales executive. This will not only give favourable results for the business owner but also allow both the bank and the supplier company to realize their lofty goals of the business
It is better for the parties involved in BBG to vale one another and give one another adequate respect and regards.
