Buyer’s Credit facility to the Overseas Importer

Buyer’s Credit may be a safe and non recourse mode of funding choice on the market to Indian exporters, particularly to tiny and medium enterprises (SMEs), and motivates them to enter overseas markets. Buyer’s Credit programmed conjointly seeks to obviate the necessity of gap of ‘Letter of Credit’ by overseas consumers in favor of Indian exporters, thereby reducing the group action price and conjointly the complexities concerned in funding international trade transactions. The Programmed permits Asian country exporters to enter into the competitive international market with the merchandise and funding to change the customer import identical from India. It conjointly frees Indian exporter’s assets thereby enabling them to extend their scale of operations

Details Steps concerned in consumers Credits

1 Contract for export of products or services is signed between overseas customer (Importer) and Indian businessperson.

2 Overseas customer requests NumeroUno for sanction of Buyer’s Credit facility to finance the import of products or services below the contract.

3 when due diligence, sanctions Buyer’s Credit facility to the Overseas Importer/Buyer (Borrower) on reciprocally in agreement terms that embrace security, rate of interest, credit tenure and reimbursement schedule etc.

4 Overseas customers execute security documents together with Buyer’s Credit Agreement (BCA) and make security as per the BCA.

5 Indian businessperson ships the products and dispatches export documents;

a)either on to buyer’s banker or

b) Through its own banker in Asian country.

6 Indian exporters submits 2 sets of non-negotiable copies of export documents to Numerouno beside square measure quest letter for disbursement specifying the remittent directions

7  Overseas borrowers accepts the documents given by its banker and makes arrangement for payment by method of disbursement below Buyer’s Credit that, it forwards payment authorization, debt instrument, trust receipt beside payment directions requesting Bank to create disbursement below the credit facility.

8 Bank disburses the eligible quantity below the Buyer’s Credit and remits the quantity to NOSTRO account of Indian Exporter’s Bank for onward credit to Indian Exporter’s account.

9 Indian exporter’s banker receives payment in its NOSTRO Account, provides credit to the businessperson and problems advices / FIRC to it result.

10 Overseas receiver services the Buyer’s Credit extended by NumeroUno, as per the terms & conditions of the sanction.