• Buyers-Credit

    BUYER’S CREDIT

    Benefits for the Importer 

    • The importer gets extended date for making an import payment as per the cash flows.
    • The importer can deal with exporter on sight basis, negotiate a better discount and use the buyer’s credit route to avail financing.
    • The funding currency can be USD, GBP, EURO, JPY, depending on the choice of the customer.
    • The importer can use this financing for any form of trade payments, such as collections or LCs.
    • The currency of imports can be different from the funding currency, which enables importers to take a favourable view of a particular currency.
    • It helps importer in working capital management.

     

    We shall study about this article further, in detail, in our next post.

     

    Keep reading!!

  • standby

    STAND-BY LETTER OF CREDITS

     

    Generally, standby letters of credit are used to support the applicant’s position in a contractual relationship where the applicant of the standby letter of credit is expected to fulfill an obligation. In case of failure of the applicant, the beneficiary of the standby letter of credit can draw the credit amount from the issuing bank by supplying required documents.

    It should be stressed once more that standby letters of credit are separate transactions from the underlying contracts on which they may be based.

    We shall study about this article further, in detail, in our next post.

     

    Keep reading!!

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