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.