Over the years Indian importers have used Suppliers Credit and Buyers Credit as two different modes of Import financing. RBI had defined them as Trade Credit under Master Direction for ECB and Trade Credit.
Suppliers Credit structure was understood as financing of import usance Letter of Credit (LC) by Overseas branches / Foreign banks where as Buyers Credit was considered as financing against LOU/LOC till it was stopped by RBI.
Under new RBI Circular “Trade Credit : New Regulatory Guidelines” a confusion arose on what structure can be called Suppliers Credit ?
In this article we will compare the trade credit circular, what is the confusion, what has changed in relation to suppliers credit, Impact on Local Bank and Overseas Branches and Impact on Importers.
||Master Direction: ECB and Trade Credit updated on 22 Nov 2018
||Trade Credit – New Regulatory Framework
|Definition of Trade Credit
||Trade Credits refer to the credits extended by the overseas supplier, bank and financial institution for maturity up to five years for imports into India. Depending on the source of finance, such trade credits include Suppliers’ Credit or Buyers’ Credit.
||Trade Credits (TC) refer to the credits extended by the overseas supplier, bank, financial institution and other permitted recognised lenders for maturity, as prescribed in this framework, for imports of capital/non-capital goods permissible under the Foreign Trade Policy of the Government of India.
|Definition of Suppliers Credit
||Suppliers’ credit relates to the credit for imports into India extended by the overseas supplier
||Depending on the source of finance, such Trade Credit include suppliers’ credit and buyers’ credit from recognised lenders.
|Definition of Buyers Credit
||Buyers’ credit refers to loans for payment of imports into India arranged by the importer from overseas bank or financial institution
||Depending on the source of finance, such Trade Credits include suppliers’ credit and buyers’ credit from recognised lenders.
|Recognised Lender for Suppliers Credit
||Overseas supplier, bank and financial institution
||For suppliers’ credit: Supplier of goods located outside India.
|Recognised Lender for Buyers Credit
||Overseas supplier, bank and financial institution
||Banks, financial institutions, foreign equity holder(s) located outside India and financial institutions in International Financial Services Centres located in India.
What has changed ?
- Source of finance defines whether it is suppliers credit or buyers credit.
- If an importer arranges finance against import usance LC from overseas branch, it will be classified as buyers credit.
- Supplier gives credit of 180 days on DA/usance LC etc., it will be considered as suppliers credit.
- New circular now also defines recognised lender
- Suppliers Credit: Supplier of goods is the recognized lender.
- Buyers Credit: Banks, financial institutions, foreign equity holder(s) located outside India and financial institutions in International Financial Services Centres located in India.
What is the confusion ?
Importers, Bank, and Overseas Branches over period of time started using terms Suppliers Credit for financing of import usance LC.
With Trade Credit : New Regulatory Framework, RBI defined recognised lender for suppliers credit as supplier. This created a confusion
- Whether RBI has stopped suppliers credit as market new it (import usance LC finance).
- What is suppliers credit ?
- What will import usance LC financing product be called now?
- Whether the current structures of financing import usance LC will still remain ?
- No. RBI has not stopped import usance LC finance. Now it would be know by another name.
- Suppliers Credit means financing provided by supplier. If supplier gives 180 days credit for import under DA/usance LC, it will be consider as suppliers credit. Importer will have no roles as supplier is giving finance directly or arranging for finance and also bearing the cost of it.
- Some of the alternative terminology for import usance LC can be
- Usance Payable at Sight (UPAS)
- LC Discounting LC Backed
- LC Backed Reimbursement Finance etc.
- Below two structure will not be affected by above changes which are currently active:
Impact on Local Bank and Indian Bank’s Overseas Branches
- Overseas Branches will have to change the name of the product under which they are currently sourcing the business
- Local Banks will have to change classification for reporting to RBI.
Impact on Importer
From the perspective of importer there will be no change in process which they used to follow for arranging financing against import usance LC. Only thing they will have to get acquainted with new terminology which banks will use to give financing against it.
In William Shakespeare’s words : “What’s in a name? That which we call a rose by any other word would smell as sweet”.
Terminology used for Suppliers Credit will change but underlying structure will remain the same.
- RBI Circular : Trade Credit Policy – Revised framework: Dated 13 Mar 2019
- RBI Circular: New External Commercial Borrowings (ECB) framework : Dated 16 Jan 2019
- Old RBI Master Direction on ECB and Trade Credit: Updated till 22 Nov 2018
Below given are RBI FAQs on Trade Credit updated as on 26- Dec-2018. RBI has issued revised guidelines under” Trade Credit : New Regulatory Framework“. Will update this article as when RBI updates the FAQs with revised guidelines.
1. Does discontinuance of LoU/ LoC mean that Trade Credit has been discontinued as a means of trade finance?
No, Trade Credits, including Buyers’ Credit, can be availed as a form of clean credit apart from availing Bank Guarantee for Trade Credits, subject to extant Trade Credit guidelines and compliance with provisions contained in Department of Banking Regulation Master Circular No.DBR No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time. Letters of Credit/ Bank Guarantee arrangements continue as a form of trade finance, as hitherto.
2. Do LoUs/ LoCs, which have been issued prior to issuance of A.P. (DIR Series) Circular No.20 dated March 13, 2018, but whose tenor is not over need to be cancelled?
No, LoUs/ LoCs issued and accepted prior to the issuance of the said circular may continue till their original validity. However, no roll-over is permitted.
3. Whether SBLC can be issued by AD Category branches on behalf of their customers for availing short term trade finance from overseas lenders in Foreign currency?
AD banks can issue SBLC on behalf of their customers for availing short term trade credit from overseas lenders in foreign currency subject to such SBLCs complying with the provisions contained in Department of Banking Regulation Master Circular No. DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time.
As discussed in the earlier article, RBI issued a circular related to Trade Credit – New Regulatory Framework which has provided clarity on many aspects of Trade credit (Buyers Credit / Suppliers Credit). One of this aspect is All-in-Cost Ceiling.
This article is about All-in-Cost definition, relevant extracts of RBI circular, what has changed and what will be its impact on trade credit products offered by banks.
Continue reading Trade Credit : Changes in All-in-Cost Ceiling
As discussed in earlier article, RBI issued a circular related to Trade Credit – New Regulatory Framework which has provided clarity on many aspects of Trade credit. One of the aspect is Trade Credit (Buyers Credit / Suppliers Credit) availed by units based in SEZ/FTWZ/DTA.
In this article we have provided relevant extracts related to SEZ/FTWZ/DTA, definition, documentation and process to be followed by developers and units.
Continue reading Can SEZ, FTWZ and DTA units avail Buyers Credit ?
RBI has issued a new regulatory framework for Trade Credit (TC) on March 13, 2019 effective immediately. Details of the circular is given below. In next articles we will cover the major changes in the RBI circular.
Major highlights of the RBI circular are
- What be termed as Suppliers Credit ? As per the new circular Only those finance provided by Supplier of goods located outside India can be termed as suppliers credit. Some example finance provided by supplier can be DA Document or Usance LC for 180 days etc. Import Usance LC finance arrange by importer will hence forth be called UPAS, LC backed Reimbursement Finance, or LC Discounting or any other term given by local / overseas branches.
- Banks can issue Bank Guarantee for availing trade credit. Few private sector banks earlier where insisting on giving SBLC to only their overseas branches for trade credit. But with this circular understanding should be that banks can now issue guarantee / SBLC to any overseas banks / branches, FI, Foreign Equity holder and IFSC Branches.
- The directions on issuance of guarantee mentioned under this provision shall come into force from the date of publication, in the Official Gazette, of the relative Regulations issued under FEMA. As of 18-Dec-2019, above Gazette is yet to be issued.
- Changes in all-in-cost ceiling and definition.
- Foreign branches / subsidiaries of Indian banks are permitted as recognised lenders only for Foreign Currency Trade Credit.
- Non-banking financial companies (operating from IFSCs) will now be able provide trade credit.
- Another header created in amount for which Trade Credit can be availed by oil/gas refining & marketing, airline and shipping companies. Per Transaction Maximum Amount permissible will be USD 150 Million.
- Policy to avail trade credit for Shipyard and Shipbuilder.
- New Definition of all in costing pricing (It includes rate of interest, other fees, expenses, charges, guarantee fees whether paid in foreign currency or INR). Thus would it mean 6 Month + 250 bps would also included bank guarantee fee charged by local bank ?
- Hedging Provision.
- Change of Currency of borrowing.
- Policy and process of Trade Credit related to SEZ, FTWZ and DTA.
- Security which can been offered for Trade Credit, creation of charge and related process.
- Authorised Dealer (AD) Banks to decide on formats or manner in which Trade Credit arrangements / loan agreements are to be documented.
- Role of Local Banks in Trade Credit.
- Procedure in case of Invocation of Guarantee.
- Definition of Foreign Equity Holder as per New External Commercial Borrowings framework
- What importers will have to do henceforth to avail buyers credit / trade credit.
- What will be changes in accounting treatment for buyers credit against Bank Guarantee in importers books of account.
Continue reading RBI Circular : Trade Credit – New Regulatory Framework
In the earlier articles, we have discussed about LC format MT700, and how to prepare and check documents under LC. This article provides a checklist for exporter after Letter of Credit (LC) is opened before shipment of goods. This will help exporter better understand the details in LC and whether exporter will be able to comply with its terms. If not, exporter should ask to get amendment in relevant clause.
Where ever possible exporter should ask for a draft copy of LC to check terms, so as to avoid amendments after LC is opened.
Exporter should look for below terms/clauses:
- Issuing Bank
- Check name of issuing bank (swift code) and if its a trustworthy bank. How is the experience of others exporters in dealing with this issuing bank.
- In case of financing requirement, check if exporter’s bank has lines of the issuing bank.
- Check all dates in LC
- Date of Issue (31C), Date of Expiry (31D) and Latest date of Shipment (44C):
- Check if deadlines mentioned is acceptable. It is advisable to have margin in date of shipment and expiry to avoid requirement of amendment in LC.
- Verify the expiry location of the letter of credit. “Field 31D: Date and Place of Expiry” and “Field 41A: Available With … By …”. Both should be preferable in country of exporter.
- Presentation Period (48):
- As per RBI Master Direction “Export of Goods and Services”, exporters are expected to present export documents within 21 days of shipment. Thus LC should preferably mention 21 days.
- Incase of more than 21 days, banks may handle them provided they are satisfied with the reasons for the delay. It is advisable to clarify the same with exporter’s bank.
- Name and Address of Beneficiary (59) and Applicant (50) are correctly stated.
- Description of Goods & Service (45A):
- Complete description of goods
- Units and Price
- Mention of performa invoice or underlying contract should be avoided.
- Incoterms (45A):
- Incoterms and shipment mode must match each other
- If CIP or CIF incoterm is used, insurance document requirement to be mentioned in 46A.
- Insurance (46A)
- Clause to be covered.
- Where is the claim payable.
- Insurance to cover from which point to which point.
- Currency and Amount (32B) in Letter of credit should match with sales contract
- Negotiation Clause (41A): Is LC restricted or available with any bank? Based on arrangement of exporter with existing bank or negotiating bank, it will help arrange pre shipment &/or post shipment finance.
- Payment Terms:
- Is it available by sight payment, deferred payment, acceptance or negotiation. (41A)
- Is the tenor stated correctly, number of days from sight or date of invoice, transport document etc. (42C)
- Documents Required (46A):
- List of documents required
- Number of original and copy required.
- Type of transport documents required.
- Type of Insurance documents required.
- Clause requiring applicant documents : LC should avoid clauses requiring documents that are to be issued, signed or countersigned by the applicant.
- Beneficiary Certificate: Such clause can be avoided.
- Non Documentary Conditions (47A).
- All documents to require LC number can be avoided.
- Check if any clause of UCP600 has been excluded or not. If excluded, understand its impact on exporter.
- Port of Loading (44E) and Port of Discharge (44F):
- Advisable to mention Port of loading as Any Port in India (exporter country)
- Port of discharge is consistent with sales contract.
- Letter of Credit Charges (71B):
- Understand and determine which fees must be paid by the exporter according to the letter of credit conditions.
- “Courier Fee / Postage Fee”, “Advising Fee”, “Discrepancy Fee”, “Handling Fee / Negotiation Fee”, “Amendment Commission”, “Confirmation Fee”, “Reimbursing Bank Charges”.
- Partial Shipments (43P): Whether it is allowed or not and whether the same is as per sales contract
- Transhipments (43T): Preferable, it should be allowed.
- Reimbursement Instructions (53A)
- Confirmation Status (49): Is it confirmed LC or has an option for adding confirmation and who will bare the cost of the same. This field will have these three options: Confirmed, Without, May Add. If case where the LC is already confirmed where is confirming bank located.
Above is not a comprehensive list. Depending on type of goods exported and countries to which it is exported, requirement of clauses and document may differ.
If you do not understand or have any queries in any of the above clauses or terms, you can get in touch with us.
- RBI Master Direction: Export of Goods and Services
New Article: RBI Circular: Trade Credit : New Regulatory Framework
RBI revised Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 on December 17, 2018 (link in reference). Revision is made to ECB guidelines, Trade Credit, borrowing by banks outside India and others.
This articles covers changes made to Trade Credit guidelines.
Continue reading Revised Guidelines for Trade Credit
Post RBI disallowed LOU and LOC for buyers credit transactions, importers and banks are trying different structures which can assist in Import finance. Some of these structures are
- Suppliers Credit
- Buyers Credit Against SBLC (Standby Letter of Credit)
- Reimbursement Finance (Usance LC Reimbursement at Sight)
Continue reading Reimbursement Finance (Usance LC Reimbursement at Sight)
Purpose of Letter of credit (“LC”) is to give payment security to the beneficiary subject to documents presented under the LC complying with the requirements of the LC.
To check if documents are compliant, banks examine the required documents based on:
- The terms and conditions of the documentary credit.
- The applicable rules of UCP 600.
- The applicable content of ISBP 745.
Continue reading How to Prepare and Check Letter of Credit Documents
Documents under Documentary Credit (letter of credit) are broadly classified into four categories namely
Continue reading Documents Under Letter of Credit
Since RBI Stopped Buyers Credit Transactions against LOU and LOC, few questions kept on coming up regularly
- What was the outstanding amount of buyers credit in overseas branches of Indian Bank as RBI data did not provide bifurcation products wise ?
- What is the run down in books of these bank since 13 March 2018 RBI Circular ?
- What is its impact on Libor based finance available to Indian importers ?
In this article we have provided the data and analysis which will answer the first two questions.
Continue reading Buyers Credit Outstanding Down by $25 Billion
Supplier’s Credit is a structure of financing Import into India. In this structure, overseas suppliers or financial institutions outside India provide financing to importer on Libor linked rates against Usance letter of credit (LC). Supplier’s credit internationally is also known as Usance Payable at Sight (UPAS) structure.
Continue reading Letter of Credit Clauses Related to Suppliers Credit
Earlier article “Types of Swift Message used in Letter of Credit and Suppliers Credit” discussed details related to Category 7 message. This article further explore MT700 used for Letter of Credit Issuance. This will help importers understand various fields in MT700, related UCP 600 reference etc.
Continue reading Letter of Credit – MT 700 Format
SWIFT system is used for Bank to Bank communication and Bank to Corporate communication. There are different type of Swift messages format related to specific purpose. This article focuses on Category 7 message.
Continue reading Types of SWIFT Message used in Letter of Credit and Suppliers Credit
Supplier’s Credit is a structure of financing Import into India. In this structure, overseas suppliers or financial institutions outside India provide financing to importer on Libor linked rates against Usance letter of credit (LC). Importer and Overseas Bank will have to follow below process
Continue reading Suppliers Credit Process Flow
RBI issued a circular on 10 Sep 2015, revising the policy on Trade Credit (Buyers Credit & Suppliers Credit). Summary of the same is given below:
As per revised guidelines, RBI has allowed resident importer to raise trade credit in Rupees (INR) within below framework after entering into a loan agreement with the overseas lender:
Continue reading Buyers Credit & Suppliers Credit in Rupee (INR)
The trigger for this topic is a question that a reader asked:
We have a processing facility of granite. Can we use buyers credit for consumables (our banker refusing for consumables). As per them only raw material is allowed for buyer credit
Continue reading Buyers Credit on Import of Non Capital Goods
Incase of raw material imports, RBI had delegated approving powers to Authorised Dealers (Banks) for Trade Credit (Buyers Credit / Suppliers Credit) for a tenure upto 1 year from the date of shipment. Bank’s based on internal policies decided customerwise tenure. Because of variation in policies between banks, few importers used buyers credit for arbitrage.
Continue reading Relevance of Operating Cycle in Buyers Credit Transaction
Further to article published below, RBI received suggestion from merchanting traders and trade bodies, based on which guidelines on merchanting trade transactions have been further reviewed on 28th March 2014 and with effect from 17th January 2014. Summary of the changes are given below.
Continue reading Revised Guidelines for Merchanting / Intermediary Trade
The trigger for this topic is a question that a reader asked:
Question : What are the RBI guidelines for availing Letter of credit facility and/or buyers credit facility for the import of second hand capital goods? Is it possible for a company to avail these facilities for second hand machinery?
Continue reading Buyers Credit on Import of Second Hand Machinery
Using Swift Codes Banks and Financial Institutions send and receive swift messages. But there must have been times where you might have come across your bankers coming back to you stating that they do not have swift key arrangement with buyers credit bank. Thus they will not be able to send Letter of Undertaking (LOU) / Letter of Comfort (LOC) authenticated swift message (MT799) to buyers credit bank. Below article gives a brief about why situation arise.
Continue reading Relationship Management Application (RMA) and Buyers Credit
Importers banking with Co operative Bank’s both AD Category and Non AD Category, face issues with arranging buyers credit because
- In case of AD Category Co operative Bank: Limited Lines in International Market or No Lines
- Non AD Category Co operative Bank: They cannot deal directly in Import or Export transaction but have to route the transaction through tie up bank.
Continue reading Buyers Credit for Co Operative Bank Customers
In the circular issued on 11th July 2013, RBI has made following two changes in relation to Trade Credit transactions:
- Period of Trade Credit (Buyers Credit / Suppliers Credit) should be linked to the operating cycle and trade transaction.
- All in cost ceiling of 6 Month L+ 350 bps will continue to be applicable till September 30, 2013 and is subject to review thereafter.
Continue reading Period of Buyers Credit Linked to Operating Cycle
In earlier articles, we had seen that, banks are permitted by RBI to approve Suppliers’ and Buyers’ Credit (Trade Credit) including the usance period of Letters of Credit opened for Import of gold in any form including jewelery made of gold/ precious metal and or studded with diamonds /semi precious /precious stone not exceeding 90 days from the date of shipment.
Continue reading Buyers Credit on Import of Precious and Semi Precious Stone
Myanmar has been under various international economic sanction for more than a decade, which has crippled its international trade. Below article gives a background of economic sanctions on Myanmar, recent relaxations in these sanctions and what will be its likely impact on trade finance from Indian importers perspective.
Continue reading Myanmar Economic Sanctions – Background, Recent Relaxation & Trade Finance
What is High Sea Sales ?
High Sea Sales (HSS) is a sale carried out by the carrier document consignee to another buyer while the goods are yet on high seas or after their dispatch from the port/airport of origin and before their arrival at the port/ airport of destination.
Continue reading Buyers Credit on High Sea Sales Transaction
In earlier article we had discussed about WHT on Buyers credit. This article answers questions related to withholding tax on suppliers credit.
Continue reading Withholding Tax (WHT) on Suppliers Credit Transactions
Note: Post this article there are changes in maturities for which libor is issued. This article might now be relevant for long tenure transactions (12 Months and Above). Refer link for more details on change in Libor: Change in LIBOR Tenures and Impact on Trade Finance
Banks and Importers consider various factors before going for Buyers Credit transaction for more than 6 months tenure. One such factor is buyers credit with 6 Month Libor Reset option. The below article elaborates on these factors.
Continue reading Buyers Credit with 6 Month Libor Reset
After the expiry of deadline of 30-09-2012, there was a prolonged uncertainty for last 9 days on what is the all in cost ceiling for Trade Credit (Buyers Credit / Suppliers Credit). Reserve Bank of India (RBI) issued a clarification or revised circular today clarifying the same. Summary of the same is given below
- Maximum Interest cap for Upto 5 Years : 6 Month Libor + 350 bps. This rate has been referred in it circular 11-09-2012 (Link given below)
- Until further review, the rate remains same. Thus, this time there is no deadline set for the review of the above rate to avoid any slippage like above.
Continue reading Review of Trade Credit All-In-Cost Ceiling
In earlier articles on Buyers Credit on Import of Gold and Import of Platinum, Palladium, Rhodium, Silver, as stated, Reserve Bank of India (RBI) had permitted banks to approve Suppliers and Buyers Credit (Trade Credit) including the usance period of Letters of Credit for import of rough, cut and polished diamonds, for a period not exceeding 90 days, from the date of shipment.
Continue reading Buyers Credit on Jewellery
From Importer’s Perspective
There are various reasons because of which an importer would like to make a pre-payment of buyers credit. Such as:
- USD-INR rate in favour of importer post buyers credit is taken.
- Buyers credit is taken by way of keeping Fixed deposit as security and now importer wishes to free cash.
- Importer wishes to free Non Funds based limits for other use.
- Any other such reasons.
Continue reading Prepayment of Buyers Credit
EURO based buyers credit is currently funded by most of the banks using EURIBOR which is issued by European Banking Federation and ACI. A similar rate is issued by British Banking Association known as EUR Libor but is not often used by bankers for funding buyers credit transactions.
Continue reading Difference Between EURIBOR & EUR Libor
What is OFAC Sanctions ?
- The Office of Foreign Assets Control (OFAC) is an office of the Treasury Department of United States of America (US).
- OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries, organizations, entities, and individuals.
- Regulations issued under Trading With the Enemy Act (50 U.S.C. App.§§ 1-44) or by the US President under authority delegated under the International Emergency Economic Powers Act.
- The OFAC sanctions programs are implemented through restrictions on imports and exports, prohibitions on financial transactions, freezing of assets, and other means.
Continue reading OFAC Countries & Implication on Buyers Credit
Considering the specific needs of the Infrastructure sector, RBI under its circular External Commercial Borrowing (ECB) – Bridge Finance for Infrastructure Dated 23-09-2011, reviewed the ECB policy. An amendment was made in this policy on 21-09-2012. Brief summary is given below:
Continue reading Infrastructure Companies – Bridge Finance before availing ECB
Change in LIBOR Tenures and Impact on Trade Finance
Earlier articles on Buyer’s Credit have provided details on total cost involved like, Interest cost, libor, lou charges, forwarding booking cost, arrangement fee, and others.
This article provides details on how interest cost (margin) is arrived at by Indian Bank Overseas Branches or Foreign Bank.
Continue reading Buyers Credit Interest Rate (LIBOR + Margin)
Type of Transaction Where Buyer’s Credit Cannot be Done
- Incase of local trade
- Advance payment for Imports: Buyers Credit for any amount paid as advance either part or full is not allowed as RBI Caster Circular on External Commercial Borrowing and Trade Credit. Inference has to drawn the above circular. Circular says maximum tenure allowed for buyers credit from the date of shipment is (shipped on board date) upto 360 days in case of raw material and upto 3 years in case capital goods. Any Advance Payment always done before shipment of goods. And thus not allowed.
- Not allowed for import of services
Continue reading Transaction where Buyer’s Credit is Restricted
Reserve Bank of India (RBI) in its circular dated 28-08-2008 had revised guidelines for Import of Platinum, Palladium, Rhodium and Silver. Extracts of the circular are given below.
Suppliers’ and Buyers’ credit, including the usance period of Letters of Credit opened for import of Platinum, Palladium, Rhodium and Silver should not exceed 90 days from the date of shipment. The revised directions will come into force with immediate effect.
Continue reading Import of Platinum, Palladium, Rhodium, Silver
Reserve Bank of India (RBI) in its circular dated 06-05-2011 has revised guidelines for import of Rough, Cut and Polished Diamonds. Extracts are given below.
Supplier’s Credit and Buyer’s Credit (Trade Credit) including the usance period of Letter of Credit (LC) opened for import of rough, cut and polished diamonds has been restricted to 90 days from the date of shipment from immediate effect.
Continue reading Buyer’s / Supplier’s Credit on Rough, Cut and Polished Diamonds
Person / Firm who co ordinates with Indian Overseas Branches or Foreign Bank and arranges best possible quote for transactions. They do not directly represent any of these bank. They are also known as Buyers Credit Brokers & Buyers Credit Agents
Continue reading Buyers Credit and Suppliers Credit Consultants
What is Supplier’s Credit ?
Supplier’s Credit is a structure of financing import into India. In this structure, overseas suppliers or financial institutions outside India provide financing to importer on Libor linked rates against usance letter of credit (LC).
Continue reading Supplier’s Credit – Meaning & Process