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Business Loan / Financing Linked to LC

PrismERP enables seamless integration of business loans or financing options directly linked to Letters of Credit (LC), providing essential funding support for international trade and export-import operations.

Overview​

This feature allows businesses to associate their loan or financing arrangements with specific Letters of Credit, ensuring that the funds needed to fulfill LC obligations are properly managed and tracked. By linking financing to LCs, companies can optimize cash flow, reduce financial risks, and enhance transactional transparency.

Key Features​

  • Direct Loan-LC Association Connect business loans or financing facilities to individual Letters of Credit for streamlined fund allocation.

  • Financing Status Tracking Monitor the approval, disbursement, and repayment status of loans tied to specific LCs.

  • Payment Scheduling & Management Manage repayment schedules and track interest or fees associated with the financing.

  • Automated Accounting Entries Automatically generate accounting entries related to loan disbursements and repayments linked to LCs.

  • Enhanced Cash Flow Planning Plan and forecast cash requirements by correlating loan availability with LC payment milestones.

  • Reporting & Compliance Generate detailed reports on financing linked to LCs, supporting audit and regulatory compliance.

Integrated With​

  • Letter of Credit Management
  • Loan & Financing Modules
  • Accounting & Financial Management
  • Cash Flow & Treasury Planning
  • Reporting & Analytics

PrismERP’s Business Loan / Financing Linked to LC feature empowers businesses to secure and manage the necessary financing for Letters of Credit, facilitating smoother international trade transactions and robust financial control.