What does FB mean in BANKING

Forward booking is an agreement between two parties to purchase goods or services at a pre-determined price on or before a certain date. The agreement allows one party to secure product or services from another party at predetermined prices and terms.

Forward bookings provide both buyers and suppliers with many advantages. For buyers, they have the assurance that their products will be available in the future, while for suppliers, it guarantees that they will receive orders and payment by agreed dates. By having this guarantee, buyers and suppliers can better plan their finances and operate more efficiently in the long run.

Generally, when forward bookings are placed, suppliers agree to provide a service or product in the future at an agreed upon price. Payment is often made upfront so that suppliers can ensure they will receive payments on time at an agreed rate while buyers have the peace of mind knowing their order has been secured in advance for future needs.

The length of time covered by a forward booking varies depending on the specific situation and agreement between parties involved. It could range from a few days to months or even years in advance.

Many industries make use of the forward bookings system as a way to secure resources for future operations. This includes hospitality companies such as hotels and airlines; manufacturing firms; agricultural businesses; technology companies; construction contractors; medical facilities; retailers; automotive firms and many others.

Depending on your circumstances and what was originally agreed upon with your supplier, changes may be possible but usually at an additional cost or penalty fee due to changes made outside of what had been previously scheduled. It's best to check with your supplier beforehand so you both are aware of any extra costs or any other issues that might arise due to requested alterations made later on down the line..

To determine if using a forward booking system fits your business needs, consider what type of industry you’re in, how much inventory you typically carry, how frequently you need certain items replenished and how quickly customers need orders fulfilled in order for them not to go elsewhere. If these factors work out positively when looking into making use of this system then it might be worth pursuing further.

To ensure success when entering into a forward booking agreement it’s important that both parties properly review all documents associated with it such as contracts, financial records, delivery information etc., confirm specifications including pricing involved with each transaction as well as setting clear expectations on delivery times and quality standards required should be met by both sides without deviation.