Facility of arranging funds for importers using LC
Suppliers' Credit is a product where in Supplier and Buyer agree on payment terms so that the Supplier gets paid at sight/ as per payment terms from his Bank through LC Negotiation and Buyer gets credit period to make payment as per the tenor of the LC.
1. The buyer can deal with seller on sight basis and negotiate a better deal.
2. Applicant gets access to cheaper funds from International markets without immediate outlay of funds.
3. Multiple financing locations for beneficiaries.
4. Quick turnaround of transactions from the Bank.
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 1st Advising Bank (Negotiating Bank) and is further advised to 2nd Advising Bank (Beneficiary Bank).
5. Exporter ships the goods and submits documents to his Bank, who further sends to Negotiating Bank.
6. Negotiating Bank pays the Bene Bank as per LC terms i.e. at Sight/ on Acceptance from Issuing Bank.
7. On due date Importer client pays us Principal plus applicable Interest and the same is remitted to Negotiating Bank
Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion.