This is a useful one. But, while funding for capital goods, the credit period can be up to 5 years but Guarantee could be issued for a maximum period of 3 years. There is a mismatch or a typo error.
What happens in case Supplier gets loan amount from foreign bank and then doesnot delivers the good? Buyer still have to pay back the loan or he is safe?
Watch the video very carefully. Here, the exporter makes the shipment before the money is sent to the exporter. It's like a hand to hand exchange of goods and cash between two parties.
How this will benefit or provide comfort to importer/exporter?? Why should importer bank avail credit.. The process will only become complicated as this will require much time..y this much complications? Instead importer bank itself can arrange LC,, supplier can encash that in his bank like normal LC..y to complicate this sir??
Analyze the benefits, you will get it. :) If importer has to arrange the loan from the domestic market for his or her import payment, then it might be much costlier than the loan from the international market. So, we can say that the most important factor for which the importer goes for buyers' credit is interest cost saving. Depending on the preference of the customer, the funding currency can be in any foreign currency, for example, USD, GBP, EURO, JPY, and so on. The currency of imports can be different from the funding currency, which enables importers to take a favorable view of a particular currency. The importer can use this financing for any type of payment mechanism, namely open account, documentary collections, or LCs.
This is a useful one. But, while funding for capital goods, the credit period can be up to 5 years but Guarantee could be issued for a maximum period of 3 years. There is a mismatch or a typo error.
Good sir
It's clear now...thank you.
What happens in case Supplier gets loan amount from foreign bank and then doesnot delivers the good? Buyer still have to pay back the loan or he is safe?
Watch the video very carefully. Here, the exporter makes the shipment before the money is sent to the exporter. It's like a hand to hand exchange of goods and cash between two parties.
How this will benefit or provide comfort to importer/exporter?? Why should importer bank avail credit.. The process will only become complicated as this will require much time..y this much complications? Instead importer bank itself can arrange LC,, supplier can encash that in his bank like normal LC..y to complicate this sir??
Analyze the benefits, you will get it. :)
If importer has to arrange the loan from the domestic market for his or her import payment, then it might be much costlier than the loan from the international market. So, we can say that the most important factor for which the importer goes for buyers' credit is interest cost saving.
Depending on the preference of the customer, the funding currency can be in any foreign currency, for example, USD, GBP, EURO, JPY, and so on.
The currency of imports can be different from the funding currency, which enables importers to
take a favorable view of a particular currency.
The importer can use this financing for any type of payment mechanism, namely open account,
documentary collections, or LCs.