• supplier's credit

    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.

     

    Keep reading!!

Leave a comment

If you want to share your opinion, leave a comment.

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

X

Pin It on Pinterest

X