Jasmine Gladstone

Business lines of credit can be classified into two types based on whether the line of credit involves the securing of collateral against the amount borrowed or not.

Secured lines of credit

Businesses need to nominate certain assets as collateral before a lender approves this type of credit line. The enlisted assets should be of equal or greater value collectively than the total credit amount available for withdrawal. A secured line of credit has lower repayment interest rates and provides a higher credit limit for businesses to tap into. Additionally, the creditworthiness parameters are relatively less stringent in this option, as lenders consider it a safer money lending avenue. In case of a payment default, the lender can seize or liquidate the assets listed as collateral in the credit line documents. Collateral normally includes accounts receivable, machinery and other inventory, company property, stocks, shares, insurance policies, or business guarantees.

Unsecured lines of credit

On the other hand, unsecured lines of credit do not include collateral. However, a business will need to have a perfect repayment record and credit rating before the lender can approve an unsecured line of credit for their business operations. Unsecured lines of credit are much harder to get for a large majority of businesses as not many may have a perfect credit history.

ITAR-controlled goods, referred to as defense articles, are those items that are specifically identified in the United States Munitions List, or USML, which is a section within the ITAR.

This list includes descriptions of the items that are controlled. A defense article is any item or technical data listed on the United States Munitions List (USML).

The process for becoming compliant with the ITAR starts with registering your company with the Directorate of Defense Trade Controls of the US State Department.

Then you will establish a compliance program that includes evidence of commitment to compliance from senior management, documentation in formal written procedures, awareness training for applicable personnel in the control processes, maintaining proper records, auditing the process to ensure that it is being implemented, and investigating and reporting suspected violations.

ITAR is the abbreviation for and the typical way to refer to the International Traffic in Arms Regulations, which documents the US State Department’s requirements for the export and import of specific items, referred to as defense articles, that are controlled for foreign policy and national security purposes. The authorization for the State Department to control exports and imports of defense articles and defense services is through the Arms Export Control Act.

While most of the USMCA is the same as NAFTA, there were some improvements. One is for the automotive industry. The rules of origin were upgraded to help support an increase in US production and employment. Another area is energy.

The update for this area helps to fix an issue with hydrocarbons transported through pipelines and new flexibilities in the rules of origin for oil and gas moving through the three countries.

The final improvement is for digital trade. NAFTA did not include e-commerce or digital trade as it was developed prior to these kinds of trade.