RA Financing is a form of Trade Credit structure wherein Reimbursing Bank acts as a lender on the basis of the LC, funds the Exporter’s Bank /claiming Bank of a trade against a reimbursement claim on sight/ as per LC terms. The LC issuing bank pays back the Reimbursing Bank as per the payment terms.
1. Seller and buyer can deal on sight basis and negotiate a better deal.
2. Through this mechanism, Applicant gets access to funding from international markets.
3. Multiple financing locations for the beneficiaries.
4. Expertise in processing and quick turnaround of transactions.
1. Buyer approaches our Bank with the requirement of Financing.
2. We provide quote from Funding bank to the client.
3. Post acceptance of quote by the client, we proceed with Documentation and LC issuance.
4. LC is sent to Beneficiary Bank and post shipment by Exporter, documents are sent by Beneficiary Bank to the Issuing Bank.
5. Post receipt of Acceptance SWIFT by Issuing Bank, Beneficiary Bank claims funds from the Reimbursing Bank as per the LC terms.
6. Reimbursing Bank honours the claim from Beneficiary Bank as per Authorization SWIFT from the Issuing Bank.
7. On due date Importer client pays us Principal plus applicable Interest and the same is remitted to Reimbursing Bank.
Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion.