• supplier's credit


    Benefits to the Importer

    • Helps local importers gain access to cheaper foreign funds close to LIBOR rates as against local sources of funding which are costly compared to LIBOR rates.
    • Availability of cheaper funds for import of raw materials and capital goods.
    • Ease short-term fund pressure as able to get credit.
    • Importer can make the payment at sight to the exporter and command a better price in terms of cash discount


    Benefits to the Supplier 

    • Realize at-sight payment
    • Avoid the risk of importer’s credit by making settlement with LC


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


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