Overview

RA Financing is a form of Trade Credits structure where Reimbursing Bank acts as a lender independent of the LC, funds the Exporter’s Bank /claiming Bank of a trade against a reimbursement claim on sight/ as per LC terms, and the LC issuing bank pays back to Reimbursing Bank as per payment terms of LC on due date.

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Features &
Benefits

Features & Benefits

  • imgThe buyer can deal with the seller on sight basis and negotiate a better deal
  • imgApplicant gets access to cheaper funds from international markets
  • imgMultiple financing locations
  • imgQuick Turn Around of transactions

How it works?

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Buyer approaches our Bank with the requirement of Financing
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We provide quote from Funding bank to the client
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Post acceptance of quote by the client, we proceed with Documentation and LC issuance
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LC is sent to Beneficiary Bank and post shipment by Exporter, documents are sent by Bene Bank to the Issuing Bank
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Post receipt of Acceptance SWIFT by Issuing Bank, Bene Bank claims funds from the Reimbursing Bank as per the LC terms
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Reimbursing Bank honors the claim from the Bene Bank as per Authorisation SWIFT from the Issuing Bank
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On due date Importer client pays us principal plus applicable interest and the same is remitted to Reimbursing Bank.
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Fee &
Charges

Fee & Charges

SOC –Trade

Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion