What is working capital, BG, counter BG ?

Question

Accepted Answer

Working capital is the difference between current assets and current liabilities. BG stands for Bank Guarantee and Counter BG is a guarantee issued by the beneficiary's bank to the applicant's bank.

Working capital is the amount of money a company has available to fund its day-to-day operations
It is calculated by subtracting current liabilities from current assets
BG or Bank Guarantee is a type of financial instrument issued by a bank on behalf of a customer
It is a promise to pay a specified amount of money to a beneficiary if the customer fails to fulfill their contractual obligations
Counter BG is a guarantee issued by the beneficiary's bank to the applicant's bank, which serves as a counter-guarantee to the original BG

Accepted Answer

Working capital refers to the funds necessary for a business to manage its day-to-day operations, covering short-term financial needs and expenses 1. A Bank Guarantee (BG) is a financial commitment from a bank to pay a beneficiary if the applicant fails to meet their contractual obligations, ensuring protection against non-performance 4 5. A Counter BG is an additional guarantee provided by one bank to cover another bank's guarantee, often used in international transactions to mitigate risks associated with foreign buyers

Accepted Answer

Remote monitoring

What is working capital, BG, counter BG ?

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