FA, 2020 amendment increasing...
Bank Name | Key Features | |
---|---|---|
|
Interest rate
4.00% - 5.00%
Max loan amount
200 |
|
|
Interest rate
4.00% - 5.00%
Max loan amount
100 |
|
|
Interest rate
3.50% - 4.50%
Max loan amount
100 |
|
Supplier's Credit relates to credit for imports into India extended by the overseassuppliers or financial institutions outside India. Usance Bills under Letter of Credit(LC) issued by Indian bank branches on behalf of their importers are discounted by Indian bank overseas branches or Foreign bank.
Suppliers would ask for sight payment where as you want credit on the transaction. At times, in capital goods, banks would insist on using term loan instead of buyer’s credit. By this way you can avail cheap LIBOR rate funds and your supplier would also not mind as he is getting funds at sight.
For Importer
For Supplier
The bank will pay suppliers the business day following the day the payment was approved by the buyer and requested by the supplier.
The pricing is communicated to you at time of signing the contract. If the pricing changes, the supplier will be notified via email. The supplier can always log in to the platform and see the details of the discount calculation and can stop discounting at any given moment.
The supplier can request for early payment (discounting) at any moment by logging in onto the platform. There is no deadline.
The Supplier Finance program is non-recourse towards the supplier. Once the supplier is paid, the bank has no legal right to reclaim the invoice amount from the supplier.
Once the buyer has agreed to the participation, the on-boarding process can be quick. On average, companies can be onboarded in 4 business days.
No change of invoicing is required. The existing process that a supplier performs to invoice the buyer still remains in place.
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