Buyers Credit is a unique credit support programme which motivates a number of the Indian exporters to discover the fresh and new geographies. On using this programme, the respective buyer can open the letter of credit in the suitable Indian exporter and it can help to import the good as well as the service from the India on the best-deferred payment conditions. Therefore, the exporter can cut down the cost of the transaction and exporter can have complexities over the international trade transaction. At the same time, the Indian exporter can access the full in international markets and it can make their working capital on the major goods to develop the various operations.
The Buyers credit is availed by buyers from the lender such the Bank and other types of the financial institution for the import payment of the buyers. Some of the banks wish to lend the importer according to the Letter of Credit, which offered by the importers’ banks. It is one of the financial arrangements by the bank to the importer and other people who are looking to run the business. Hence, it will be simple to get out from the major finical problem with no risk and trouble of it.
- Provide the financing capital good and other services according to the deferred payment terms
- It offers the non-recourse finance support for the exporter by the deferred credit contract in the cash contract
- It increases the advance payment to the exporters on behalf of the buyer
- It allows the specific financing support for the exporter
- It can save a lot of the LC charges
- It is non-LC transaction
Hence, it provides special support to solve the entire financial problem in a trouble-free manner. Even customers can obtain an end-to-end support to export the goodsat the best price without any trouble.
Advantages of using buyer’s credit card:
- The exporters are requested to payon the due date, but the importer can extend the date for the important payment according to the cash flow.
- The buyer’s credit card allows imported to deal with the exporter straight and get a special discount. Hence it makes use of this credit route to avail the major financing
- The currency can be in the form of USD, EURO, and JPY, which is based on the choice of the customer.
- This card allows the importer to make use of the financing for any form of trade viz, collection and open account.
- Here the currency of the importers can vary from the funding currency that can make sure that the importer has a suitable view of the respective currency.
- Suppliers of the major goods will obtain the payment according to the LC payment terms
- Even buyers can send requests for the major roll over the buyer credit cards with no trouble.
Hence, the Buyers Credit card is suitable for the people to importand export goods in a fine manner and make more profit with no risk involved.