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NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact
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Factoring and Forfaiting

 #Challenges to Factoring 

1.Lack of awareness

2.Availability of better options 

3.Non availability of credit insurance - credit insurance is no law in India of risk of credit . Default by the buyer.

4.Limited reach - Operational problems in India , common source of information , or lack of software.

5. Fake bills 

6.Increase cost of finance - When non recourse is chosen then commission is high, which increases the cost.

#Forfaiting 

It is a type of financing that enables exporters to receive the cash immediately by selling the receivable . Forfait can be a company , individual anything,

1. Evolved in Switzerland in 1960.

2. French- word surrender something 

3. 5 parties involved 

#Features 

It is without recourse only.

Forfaiting is short term medium term and long term whereas factoring is short term only.

1. 100% Finance - Exporter get full amount 

2. Evidence - There is certain credit instruments used like letter of credit, Bill receivable etc.

3. Fixed or Floating rate basis - Floating changes rate .

4.Suitable for high value export - if big order then only it initiates 

5. Cash after presentation of documents , shortly after shipment- Document like letter of credit.

Letter of credit is issued by bank only.

5 Parties are -SELLER , SELLER FORFAITOR , BUYER , BUYER FORFAITOR , ONE BANKER  

#Working of Forfaiting 

1. Commitment to purchase debt/Receivables - It is a contract between exporter and forfeiter 

2. Commercial account - Many documents involved 

3. Delivery of goods 

4. Gives Guarantee 

5. Hand over documents 

#Benefits of Forfeiting 

1. Volume 

2. Speed 

3. Simplicity 

4. Profitable 

5. Liquid - It provides immediate cash flow as soon as you give receivables .

6. Flexible -The structure is very flexible 

7. Full Finance  - without recourse 

8. Avoids export credit insurance - No export credit insured because of without recourse , it is forfait liability which decreases seller cost.

#Drawbacks 

1. Not suitable for short and long period 

2. Difficulty in getting IBG- International Bank 

3. Limited reach

# Difference Factoring and Forfeiting 

Short term                                                                     Medium term

No dealing in Negotiable Instrument                            Dealing in NI 

Seller bears the cost                                                    Overseas the buyer

Involves all book debts                                                  Project based

May be with or without recourse                                  Without recourse 

Domestic or International                                             Always export only 

Turnover basis                                                               Transaction basis 

Includes all related services                            Pure Financial arrangement


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