BANK DEPOSITS

 

 

1) Bank deposits, definitions:

Bank depositsThe bank deposits are accounts or securities in which the clients bring money in so that the financial entities guard it, they can offer related services and they are given returns over the capital, depending on the amount, the balance and its maintenance over the time. The bank deposits may be at sight or term; in the first case the money put into the bank  can  be withdrawn  at the client’s needs, whereas the term bank deposits obliges the client to keep the  money until its expiration time, unless  a penalty is paid  for the  withdrawal before the time or its  cancellation.

2) Who can offer bank deposits?

Any financial entity ruled and watched by the bank superintendence is authorized to collect money from the public through financial instruments such as the bank deposits. In this case the deposits can be open in the banks, the saving accounts, commercial financing institutions, financial cooperatives and trusts, among others.

3) Types:

There are two big groups or types of bank deposits: those called at sight because of its immediate money availability and the term bank deposits in which the money must be kept until the agreed expiration date. Within the deposits at sight they are the savings and the current accounts; and in the term deposits they can be varied and diverse according to its fixed term, the amount and the interest type, the way of obtaining it, a fixed or varied interest, the minimum amount of capital to open it and the maximum allowed, as well as the relation of the deposit with the other products and financial services.

4) Deposits at sight:

The bank deposits at sight, either through a saving account or a current account, allows the withdrawal and free will in the bank deposit to which you can freely access and without restrictions when you wish through a saving book, check book, debit card, automatic cashier, payment order or transference, telephone authorization or by internet, automatic debit and list consignation, among others. The main difference between the saving account and the current account is the interest rate to pay which is generally higher in the first deposits or of savings as well as the possibility of drafting or be in red in the case of the current account.

5) Fixed term:

The term bank deposits are of two types principally: those of term and fixed rate and those combined in which one part of the capital is invested in term and fixed rate deposit, whereas the other part of the money goes to investment funds in which the term is fixed but the interest is variable. A third alternative of the term deposits is that it is related to other services of financial entities to improve the investment return, which increases as long as the client is connected with a pension  plan or insurance, or it has a payment service of the list of workforce, or it has credit card, among others.

6) Term and fixed rate bank deposits:

They are generally for at least one year or twelve months, they offer the lowest interest rate but as compensation the revenue and the complete capital payoff are guaranteed with the bank deposit. They are recommended for the traditional and conservative investors.

7) Deposits combined with investment funds:

These bank deposits allow you to select the amount of capital that you wish to invest in one or another alternative, for example: 70% to term and fixed rate, and the rest 30 % in investment funds. Other usual proportions: 50 – 50% or 30 – 70% or 25 – 75%. Logically, the more you invest in the stock funds, the more expectation of getting greater interests you have, but with a higher risk. Some banks and savings accounts limit this risk, guarantying the exact capital payoff and even guarantying the minimum return for all the agreed period, which may be for 12 or 18 months. These are excellent alternatives for modern and risky investors.

8) Deposits related to other products and services:

The banks and saving accounts get better utilities when the same client uses many of their products and services simultaneously, that’s why there are bank deposits related to other products and services in which loyalty is rewarded with additional points of interest rate, for instance, if a client has a bank deposit  as well as a current account some points of 0,4%  to the ordinary interest can be added, and the same with other products such as credit cards, pension funds and many others.

9) Benefits of the bank deposits:

For the banks, the deposits represent a collection of stable and increasing resources to allow the development of its intermediation business like the collocation or loans to clients who need it, and within its process getting utility margin. For the investors and savers, these deposits are one very good option to obtain safe returns, as well as its custody and easy access by payment means and electronic systems. The competence between financial entities is so big to get the favorable of the bank deposits that they even offer electronic appliances and stuff prizes to complement the offered interest.

10) Related video:

11) External links:

UK banking brands and FSCS cover
Bank Fixed Deposits
www.snb.ch – Definitions

PUBLIC FINANCE

 

 

1) What is public finance?

Public FinanceThe public finance is the one that regulates the public expense and control the state’s income, better known as taxes. In other words, public finance is the country economy branch that controls the state funds administration and it is ruled by policies that instrument its well- development.
2) Objectives of the public finance:

The state’s principal objective in the public finance Management is to be over the fiscal expense through the correct distribution of the incomes of taxes. On the other hand, another objective to be fulfilled through the administration of the public finance is to foster the employment of the country’s inhabitants and the control of the supply and demand of goods and services. Through public finance people may be a job, which will be rewarded and through this consumption is stimulated. Finally, through it the state controls its currency and the arbitrary with other foreign currencies, besides adjusting inflation and stating it within the fixed limits of the economic policies.

ENTREPRENEURIAL FINANCE

 

 

 

1) Entrepreneurial finance, definition:

Entrepreneurial Finance In order to simply define the entrepreneurial finance we can say that it is one of the most important activities that the companies must carry out for the correct management of their finance resources which are the moto in assets of any institution. This finance must be done by the sector manager who must take into account several domestic events of the company as well as the local and international markets movements.

 

2) The entrepreneurial finance and its domestic management:

Every institution has always questioned itself about the best way of managing the interpreneurial finance when there is a certain circulating capital and strong assets. Would it be more convenient to think in this finance and its present situation towards a medium or long term future or invest now? On the other hand, if there is a complex present situation, as for the entrepreneurial finance, which is the most convenient way to improve it? its domestic management not only involves the fixed assets and the circulating on the company, but also the best way to get it taking into account interest types and rates, exchange rate types and other factors.

 

3) Some factors that move the entrepreneurial finance:

The task of a person in charge of this finance in a company is not simple if we considera ll the characterisctics that move them, authentic function moto of the big and small companies. Firstly, this finance has a risk for the company because of the market volatility that may affect them. If these markets events affect the company’s finance it may not fulfil the duties taken and the finance costs may increase dramatically. Within the mentioned events which may take the company’s finance to bankrupcy we can tell : the frightened inflation suffered by those markets of countries in via development and whose state must control and maintain within certain limits.

INTERNATIONAL FINANCE

 

 

1) International finance, some important definitions:

International FinanceWe can define the International finance from different points of view, which are usually taken into account in the global and entrepreneurial field. From the global point of view, it can be framed within the macroeconomic field and it is the way to measure the consequence that changes may bring in these countries markets and the economic communities. On the other hand, we can define international finance from the entrepreneurial frame which is a kind of thermometer which leads them to take the necessary measures so that these kinds of markets movements do not affect them negatively.

 

2) The International finance and the Exchange variation:

In the first place, we must say that in the International finance field not all the finance markets events which may affect the companies having direct result in these markets is negative. Therefore, it may happen that some characteristics like for example the exchange movement being high or low can bring an extra benefit to the specific activity of the company.

 

3) Other events which may affect the companies’ situation:

Other variations in the International finance that may affect the company’s situation are the interest types and rates in the big markets – the American, Chinese and European. Today In the international finance these are the most powerful markets worldwide, and if there is a finance liability originally from the international markets can strongly affect it. Finally, we must say that the sudden changes in the different types of securities that the companies’ assets may have in foreign countries are other events that move their finance.

 

4) The importance of the International finance in order to predict these facts:

We mustn’t forget that for all of them in charge of the companies’ finance administration, either big or small companies and having direct relation with International markets, it is essentials to be ready and, if possible, with knowledge about them. Even for raw material purchase or products importation or goods and services exportation, any event that modifies the prevention of the company as for international finance may affect it if it was not worked on.

PERSONAL FINANCE

 

 

 

1) A broad definition:

Personal FinanceWhen a person talks about personal finance, each of us may have a different definition for these terms and is correct. In order to round up our idea, we may say that is firstly a way to control our assets. This finance may be, in simple words, money management which we need to pay our expenses, investments or whatever we do with it. The different points about personal finance may take us to broaden the definition and take it to the income or profit field, and we would say that it is the way in which we should organize in our job so that its outcome is enough to pay our expenses. Here it is the fact of the expenses on certain period, which is generally monthly, and so a good organization of our finance is the secret to cover our monthly budget. Even if this seems a game of words, the personal finance is just this: making income to cover our expenses in a certain period.

 

2) Personal finance and home economy:

Personal finance is not always about one person’s expenses, but about the house expenses, or couple and family in which case the term broadens up. If we talk about home economy, either individual or family, the budget comes into discussion. We could say that we would be successful in our finance if we could make it with our job being higher than our home economy monthly budget. However, if in our case we could not be successful, this situation could be reverted going on two different ways. Firstly, we could make our personal finance get positive results with higher incomes, or otherwise trying to lower our expenses. If we have a winner mind as it should be, our thought would be oriented to the management of personal finance to increase our profits and there are many good ideas to make new extra incomes that allow us to keep our budget and even increase it and also doing whatever we always wanted.

 

3) Let’s revise our personal finance looking for new opportunities:

Without doubt the search for new opportunities to obtain higher incomes or profits through our job is the best way to control our personal finance and to be successful, without using our monthly budget. We are the only ones who can help ourselves, it is clear that nobody will come to offer extra money without any exchange, and we cannot expect anything from anyone but on ourselves. The personal finance may have another successful horizon if we decide to change our perspective, looking for business opportunities which may take us to the financial freedom that we all dream. It is clear that we not only need to have new income sources so that our personal finance get green, but also it will probably keep red if our expenses increase in such as way that they go over our profits. The control over our personal finance will also require that we have a financial plan for our money destination. An effective plan of its destination will probably make our task easier, since we will be able to know where the lost is, which unable us to order our desired personal finance without unexpectedly surprise at the end of the month.

 

4) The tranquility that our personal finance is in order:

Learning to live quietly, without getting into need of any kind and either of Money is the same as being in control of our personal finance. We could say that the term priority comes up. We all probably have different priorities in life, yet the personal finance and specifically expenses are the ones we must learn how to order according to its importance. Setting up goals related to basic values and accomplish them is the first step so then we can focus on our wishes.

 

5) Related video:


6) External links:

Persona finance News
Financial Times – Finance
Bloomberg

FINANCE

 

 

 

1) Finance, definition:

FinanceFinance is related to the best management and administration of money, the investment, use, execution and consequence. It is an area of economy that specializes in money resource, the efficiency and effectiveness, from micro finance of individuals to the macro finance of the country. Finance answers all the questions about money, how and where to get it, what the best way to use it is or spend it, and the best way to raise it to turn it into wealth. It studies the money resources that include the cash and assets, watching over the fluid transference and exchanges between all the people, companies and government for which finance intermediaries like banks are used.

 

2) Uses and applications:

Finance is applied in the administration and management of the people’s and family money, as well as in the business and companies that delegate the finance function to a specialized area and the same government in charge of the finance and better use of the nation’s capital as a whole. The banks use the concept of the finance to materialize their business to be financial intermediaries among people, companies and the public sector. The finance is in every commercial activity, as well as work, business and entrepreneurial activity, since the money is present as one of the main entities of process exchange as income for sales, salaries, commissions, financial interest and rents.

 

3) Knowledge field related to finance:

It is well known that mathematics is the closer area to finance, as well as the economy from which it comes. Then it is the bank as an entity that supports in the best use and balance of finance through saving and credit. The marketing is related to the finance as a medium to evaluate the impact of their strategies in business sales. The administration counts with the finance for its best management and its business in general use it to find the viability over the time.

 

4) Laws of finance:

The laws of finance state the importance of the money accounts order and their organization, how much it comes in and out. In order to get a good finance, you mustn’t spend more than what you receive. For the finance prosperity, a percentage of your income must go to savings. In order that the finance supports the objectives there must be a previous planning. The education on finance will allow to the wealth access. Its knowledge consists of giving to receive, sharing to increase the money.

 

5) Types:

The finance fields are: the mathematics finance, the engineering, the economy, calculation, public, personal, experiential, corporate, quantitative behavior finance. The mathematic finance studies the market; the public finance manages the state money; the personal finance handles the personal income and expenses; the corporate finance manages all related to business and so on.

 

6) Characteristics:

The finance is art and science; as to the latter, because it looks for accuracy and that focuses on mathematics and art because there is uncertainty and different criteria to get to the objectives. It studies the market related to the money and capitals, the investments and the portfolios, and the entrepreneurial or business finances. As for the market finance, its specialty is the financing; as to the investment finance everything related to profit gain; and lastly, the corporate ones manage the business so that the utilities are better and the returns increase.

 

7) Origen:

The finance origin dates from 1897 when Irving Fischer published the first article about finance. Then there are some books published on the interesting topics and the importance of finance, then there is a crisis and the economic depreciation of 1929, the finance prosperity after the second world war, the profit search and the finance optimizing in the last decade of the twentieth century, and the recent crisis in which the banks were the main characters.

 

8) Benefits:

The finance Fosters the people’s economic benefits, as well as the companies’, and the societies’, through knowledge, techniques, the risk handling, the Management and the administration, the financial intermediary and the capital production. As for the individuals, the finance balance will bring welfare and development; as to the companies, the finance management will support them to get utilities and make the business live long in time; and for societies, the smart investment and collection of public finance will bring economic growth.

 

9) Importance:

The finance is essential for life, development and growth. It in charge of getting the money and the funds you need to live and grow with the least money. It is responsible for getting the best returns in the use of the money resources. It also provides analysis, information, statistics, movements, recommendations and alerts about the money flow that allow taking the best decisions on personal finance and on the business.

 

10) Public finance:

The public and governmental finances are guidelines and process that optimize the tax collection and social investment of the resources obtained. In order to achieve its function, the public finance needs the ministry of finance, the planning area and the general treasury of the country.

 

11) Corporate finance:

The corporate finance is the planning, attainment and the management of the required and necessary financial resources for the normal functioning of the business and value generation. They include the activities of accounting register, quotation, investment, financing, treasury, collections, and money disbursement.

 

12) Personal finance:

The personal finance is related to the incomes and expenses, the salary and the investments, the house and education expenses, food and entertainment, debts and savings. Its objective is the planning, budget, and administration of all the activities that involve the income and outcome of money to live, meet your needs and achieve your development and growth.

 

13) Principles:

The finance requires of the economic situation exact knowledge and details, the cash flows, and the short and long term needs in order to provide with the solutions to reduce expenses, increase the incomes, get the funds and invest the rest of the money. A budget of the daily finance and its follow up will make it easier to take the right direction at the appropriate time. First you must always pay the debts before thinking in saving or investing, look for the lowest financing costs and higher returns in the investment. Never spend what you do not have as income or assets.

 

14) The economy:

The economy is achieved when you spend less and obtain more incomes, and better used, more returns are obtained, there is more production, more utilities are generated, there are more sales and you are more efficient and effective.

 

15) International finance:

Globalized Business requires the International finance Management and administration, allowing imports and exports, paying the debts and duties, receiving money from sales, exchanging currency, investing abroad and attaining foreign funds.

 

16) Finance and decision making:

The finance provides the decision making with the indicators of return, liquidity, Money recovery over time, current net value, and return rate, among others. It leads to current evaluation of the business and activities allowing an objective decision making.

ELECTRONIC INVOICE

 

 

1) Electronic invoice, definition:

Electronic Invoice The electronic invoice is the process through which the virtual or electronic invoice record is made without paper, but being authentic and legally enough to carry out all the supportive activities of the purchase – sale transaction, the tax and control of payment and delivery of the goods and services. It facilitates the business management of the companies, the purchases and sales, the tax payment and the accounting of the operations automatically and easily.

2) Objectives:

Its objectives are the cost reductions as there is no paper neither later operative choirs to keep data. Its process is easy and fast since it is virtual and automatic and the information can be passed as well as carrying out the operative, financing and commercial processes that come up from the electronic invoice. It is safe and certain to give the accounting and commercial information since its manipulation is reduced, and it is easy to manage the company and the businesses.

3) Advantages of the electronic invoice:

It has several advantages for the vendor, since it can be taken faster than manually, it also makes the distribution of the copies faster for the people and entities who need them when using transmission process and internet support, it guarantees that the information consigned is exact, it reduces paper and the paper filling of documents, it avoids fraud and the change of the original information, and it allows the access to the internal audit controls in real time. As for the buyer, the electronic invoice also has advantages of fast processes, since the invoice is sent electronically to facilitate the proper control processes and safety that the information is correct and exact.

4) Characteristics:

It must be able to cover the same fields and legal requirements of a traditional invoice, but automatically and without paper. Therefore, the company or individual must carry out the currently legal decree, inform to the administration of local taxes and guarantee the processes quality, being open to any visit or audit to verify it. The electronic invoice must be a controlling system of the commercial transaction made, of the agreed payment system, as well as the care and tax collection over the sales made. Additionally, it must guarantee the custody of the information, its accuracy, the operative and financial processes necessary for the business functioning.

5) Requirements for its elaboration:

The main requirement is to count with the computerized and technologic means to be able to make the automatic process. Counting with the authorized electronic signatures, the security for the information accuracy and inviolability that the process is supported and certified by the law and competent entity in the country, that the invoice has the required and necessary data for the vendor and the client, and that the parties involved agreed on its process.

6) Procedure to make an electronic invoice:

The first step to make an electronic invoice is to develop or acquire the specialized software, integrate it to the Systems and to other computerized applications in the company, to count with an automatic accounting system, to ask to the local tributary entity for the authorization of the electronic digital signature, the certification of the quality of its processes, the development of parallel tests with the manual process, counting with support and back up alternatives in case of failure, and to make regular audits to allow the process control and follow-up.

7) Who can make the electronic invoice?

Generally any individual or company can make it, as long as it has the technologic capacity to do it, the staff knowledge and training, it has the automatic accounting and has the amount of businesses that justifies the electronic invoice, and also it must have the authorization of the tributary entity due in the city where you make business and you will be asked for the electronic signature certification.

8) Services offered:

The electronic invoice offers the service of virtual mailing or by magnetic means that supports the transaction of purchase and sale. It allows to manage big amounts of businesses in real time and easily to avoid delays in the service. It facilitates the access to the invoice and to its information immediately and without losing content, it is a more organized and flexible system. It is easier and more convenient to keep the invoices and its information when the process has been electronically and not manually with paper files. The commercial statistic information seen through this process is more appropriate and complete which allows the management to make analysis of the business tendencies and evolutions.

9) Differences between the manual and the electronic invoice:

The electronic invoice can make the same process of the manual one but faster, automatically, with better organization, better use of the staff and resources, managing big businesses amounts, better efficiency in the processes, better and more information to control the operation and the Business. However, the electronic invoice requires of an initial technologic investment which must be justified for the amount of sales produced daily and monthly, since on the contrary it would be better to make them manually.

10) Related video:


11) External links:

Applying best practices for secure, automated electronic invoicing
How to Choose Online Invoice & Billing Software for your Business
E-invoicing

INVOICE

 

 

1) Invoice, definition:

InvoiceThe Invoice is a fiscal document that certifies that a purchase has been made or a service has been given, and that the corresponding taxes of VAT were collected. The Invoice is a commercial document that holds the product or the service traded details, and the value to collect for it. It supports a commercial transaction made between two parties and it could be in cash or to a term of 30 or 90 days. It is an instrument that works as evidence for the buyer and for the seller of the operation made, and it is also used for the money collection when the product or the service is financed. The Invoice is a proof document of a commercial transaction which becomes into a security.

 

2) Types of Invoice:

According to the place where the Invoice is given and the sale is made it can be called Invoice of place or extended Invoice, if the sale is made in the same place or in a different places. Depending on the way the Invoice is issued it can be manual or electronic. As for its legal matter, there can be found the complete Invoice when all legal requirements are fulfilled; or simplified Invoice which is used for small amounts and the payee is not necessary to be identified, as well as the use of substituted documents like a voucher or a receipt when the sales are very small and the buyer is not a formal entrepreneur. Lastly we can find the commercial Invoices to identify its goods exportation feature; the consulate Invoice to identify the goods origin and precedence; and the pro form Invoice when it is necessary to simplify its elaboration.

 

3) Benevolence and advantages:

The Invoice assures safety between the parties involved in the purchase – sale transaction, about the goods and the money reception, on the explicit amounts and characteristics on the document. All the same, the Invoice has legal and tributary effects, tax payments, and it solves future problems they might exist. As regards the electronic Invoice, its advantages are the cheaper cost of paper and distribution to the parties, the easy way in its expedition and connection process, and the reduction in errors proper of a manual made document.

 

4) Characteristics:

It must have the commercial operation in retail, identifying the buyer and seller of the goods and service, the amount in numbers and in letters, the currency in which it is made, the place and date, the payment conditions, the amount and description of the product and service, its delivery conditions, as well as the tax collection details. It is important to state that it is an exchanging Invoice or a purchase – sale one, its identification number, and the acceptance signature of the parties so that legal effects can take place. As for the tributary matters, it is essential the tributary identification of the seller and the buyer, and the VAT retention quality over the sales. The original Invoice is issued and given and there are as many copies as necessary so that every party has one, and one copy is processed and they are given to the competent legal entities.

 

5) Procedure to make and issue the Invoice:

Before making the Invoice there must be an agreement between the parties to buy a good or service and to pay a certain amount in cash or to term. This agreement may be orally, in the case of a simple purchase at a shop, or it may be written and formal, in the case of a company and a more complex and bigger amount of goods. Then the formal delivery is made as well as the agreement for the partial deliveries over time; and in the case of the services, the given characteristics must be specified. In this moment the Invoice is issued, either in manual form using a printer or electronically which is loyal guarantee of the transaction made and future conditions. Lastly, it can bring accounting processes, transaction register, distribution of commercial statistics, operative and administrative tasks, like the money kept and the goods delivery, and legal processes like the tax payment. Additionally, it is a legal document to claim in the future in case of unfulfilled agreements.

 

6) Who must issue an Invoice?

Every vendor must issue an Invoice to support the sale, even if there is no legal obligation for tax matters but it is a healthy practice of transaction control, supporting it, developing the domestic processes from a sales point and formalizing the transaction. Obviously the people and companies which must declare taxes over sales must support their transactions with an Invoice.

 

7) Services that it offers:

The Invoice offers the vendor the service of controlling easily the commercial Business, getting clients’ data for future sales, administrating term sales and to specific dates, being to collect if the payment is not made, and answering to the buyers’ claims when they have any. The Invoice allows the buyer to keep a record of the acquired goods and services, of the payments made, of the pay agreements, to be able to ask for products exchange or replacement in case of defects, and if possible to deduct taxes.

 

8) Differences between the Invoice and the receipt:

Both the Invoice and the receipt are commercial evidences of a purchase – sale transaction made. Although both documents may be used as future proof, the Invoice is a formal and legal document where the obligatory fields are detailed and must be filled by the parties, which results into the execution and obligation of the agreed conditions. Additionally the Invoice states the tax features related to the VAT pay over the sales.

BANK

 

 

1) Bank, definition:

Bank The bank is a financial institution and an intermediary between the saving needs, the client’s investments and the loans needs. In order to fulfill its role the bank receives the clients’ money in custody through its wide portfolio of products, such as the current and the savings accounts, term deposit securities. At the same time the bank offers its collocation portfolio like the credit cards, the free will credits, mortgage loan and car loans, among others. Within this financial intermediation process the bank gets its profit which allows it to obtain utilities together with the commissions that the bank collects for other financial services like the automatic cashiers, debit cards, drafts and transferences, virtual bank, remittances and the bank services in foreign currency.

2)  Benevolence and advantages of Banks:

The advantages are the convenience of its services, the safe custody of the money, the capital saving and investment, the reception of  resources by financing, the easy paying and care of the money, the support to do foreign operations of imports and exports, the important reference to do business with third parties. The bank is an important support for the individuals and the companies in their property and capital management and growth.

3) Selection criteria of the best bank:

The selection criteria of the best supplier and bank for your Business or for you is the quality service, its history and experience, its solidity and guarantee that they are able to manage your money, that it is located near you and your work place, the office coverage inside de country and abroad, its technology to operate by internet, people’s references about it, the emotional and personal link you may have with its employees, and of course the price of the bank services, which is represented in higher interest returns in the investments and lower interest in your loan payments.

4) Services that offers:

The bank classifies its services and products according to its orientation, for instance to the individuals and companies, and within the latter, related to small businesses, domestic companies and cooperatives and big companies. As regards its services, they are classified into four big groups: the attracting products, the collocating products, the financial services and the foreign currency products. All the bank services must aim to give a financial solution to the individuals and the companies.
 
5) Types of Banks:

Today all the Banks give the same services and Basic functions of financial intermediation, but as to the capital origin there is a private and a public bank, the former has the support of the public policies and it fosters the  crucial sectors for the economy like the agriculture and the industry. If we talk about the bank function and operation, we must talk about the Central and Issuer Bank, the Universal bank and the specialized bank which, although they are able to offer all the services, their target is certain segment and specific needs.

6) Characteristics:

The bank was born because of people’s needs to keep their Money so the bank, not only watch it and support it but it also facilitates the access to the money, the payments and the transferences. So the bank gives them the check book, the debit and credit card, the automatic cashier and sales point’s terminals, the electronic transferences, the bank offices and the internet use. As for safety, the bank has safe boxes to keep the securities. As to the deposit accounts at sight and for the client’s immediate use, the bank generally does not pay interest but collects for their management. But when the client can keep the money for a certain time, the savings or investment accounts offer an interest according to the longer period that the money stays in. the bank’s function is also to support the clients’ needs to buy their house, their car, company equipments, their new business, trips, studies, and any other necessity. Therefore, the bank offers its financing products after having approved the client’s payment capacity and the interest is lower as long as the client shows less risk in paying and gives better guarantees of support.

7) Procedure to open an account:

The traditional opening system of a bank account is going to the nearest office in person, filling out a form with your personal and professional data, signing a supporting promissory note, giving commercial and personal referees, and depositing the minimum amount to open the account. Depending on the bank account you asked for, you will be given the medium to withdraw your funds, a note book, a check book or a debit card. In some products you will be given a credit card and pre approved credit limits to be used for your needs.

8) Procedures to ask for a loan in the bank:

Even though all the bank offices can assist you when you request for a loan, some of them have special offices for the enquiry and for the loan approval. Generally you should go to the bank to complete the forms which will enable them to analyze your present and future payment capacity, because the term will depend on the type of loan and on the amount requested, which may vary between the monthly draft and the mortgage loan to 15 or 20 years. One or other bank could approve your loan in just a few minutes but it generally takes between 2 and 15 days while the referees are verified and it may also depend on the amount approves at the central loan board in their formal meetings.

9) Benefits:

A bank gives confidence, comfort and Fast Management to get Money. And the bank gets commissions and interests from the savings and loan services to the clients. As for the credit and debit cards, the bank adds a fee for its monthly or term management.

10) Related video:

11) External links:

What Are the Characteristics of a Commercial Bank?
What is a Bank ? Introduction, Definition and Features of Bank
Do bank characteristics influence the effect of monetary policy on bank risk?

VERBAL CONTRACT

 

 

1) Verbal contract, definition:

Verbal Contract Different from the written agreement, the verbal contract does not have a documentary basis; therefore, the contract is complied depending on the only one factor: trust between parties. In simple words, a verbal contract is the understanding between two parts on an object or aim, leading them to the same duties or rights than a written contract.the duties of a verbal contract may be of exchanging assets or services or not paying for these transactions.

 

2) Characteristics of a verbal contract:

One of the main characterisctics of the verbal contract is that, in case of not complying with it, there is not a proving document to obligue its legal execution. Therefore, in order to make averbal contract the parties must know each other very well and, if possible, having reached to this type of agreements before and having complied with them so as to cause trust between them. In some cases, this contract is made through good referees of the other party so trust is transfered to that referee.

 

3) External links:

Contract Law – An Introduction