Supplier Credit @ 3.50% Onwards
Supplier’s Credit is a structure of financing import into India. In this structure, overseas suppliers or financial institutions outside India provide financing to importer on Libor linked rates against usance letter of credit (LC). Realize at-sight payment Avoid the risk of importer’s credit by making settlement with LC
Enquiry Form
Commercial Vehicle Loans
Bank Name Maximum Loan Interest Rate SBLC Issuing Charge Maximum Tenore (Month)
200
4.00% - 5.00%
1%
6
100
4.00% - 5.00%
1%
6
100
3.50% - 4.50%
1%
6
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

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Documents Required

  • Individual
  • Prop Firm
  • Partnership Firm-LLP
  • PVT. LTD.
  1. Photographs 2
  2. PAN Card Copy
  3. AADHAR CARD + PASSPORT
  4. ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF
  5. LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE
  6. LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT
  7. LOAN SCHEDULE & SANCTION LETTER (IF RUNNING
  8. COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS
  9. PROCESSING FEE CHEQUE IN FAVOUR OF BANK
  10. LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER
  1. PHOTOGRAPH BOTH
  2. PAN CARD CLEAR COPY PROPRIETOR.
  3. ADD PROOF (PASS PORT, VOTER ID CARD) PROPRIETOR.
  4. OFFICE ADDRESS PROOF LATEST. (ELECTRICITY BILL, TELEPHONE BILL)
  5. FIRM REGISTRATION CERTIFICATES & GST REGISTRATION COPY
  6. LAST 1 YEAR GST RETURN COPY
  7. FIRM 3 YEARS ITR COMPUTATION, PROFIT LOSS A/C, BALANCE-SHEET, TAX AUDIT REPORT, ALL SCHEDULED & ANNEXURE
  8. PROVISIONAL FINANCIAL AY 2019-20
  9. BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED.
  10. 6 MONTH SAVING ACCOUNT STATEMENT UPDATED (PROPRIETOR)
  11. IF RUNNING ANY LOAN PLEASE PROVIDE SANCTION LETTER AND REPAYMENT SCHEDULED
  12. AGREEMENT TO SELL COPY
  13. PROPERTY PAPERS WITH CHAIN SANCTION MAP
  1. PHOTOGRAPH PARTNERS
  2. PAN CARD - COMPANY, ALL PARTNERS
  3. ADD PROOF - ALL PARTNERS (PASS PORT, VOTER I CARD ,PAN ,ADHAAR)
  4. FIRM ADD PROOF- LATEST ANY UTILITY BILL.
  5. PARTNERSHIP DEED COPY
  6. GST CERTIFICATE
  7. GST Return last 1 years
  8. 3 YEAR COMPANY ITR COI P/L A/C BALANCESHEET + AUDIT REPORT 3CB 3CD, ALL ANNEXXURS, SCHEDULED WITH C.A.CERTIFIED.
  9. PROVISIONAL FINANCIAL AY 2019-20
  10. 3 YEAR.ALL PARTNER INDIVIDUALS ITR + COMPUTATION
  11. FIRM ALL A/C BANK STATEMENT 1 YEAR UPDATED
  12. ALL PARTNER SAVING A/C STATEMENT 6 MONTH.
  13. IF RUNNING ANY LOAN – LATEST SANCTION LETTER + TRACK RECORDS OR REPAYMENT SCHEDULED.
  14. Agreement To Sell copy
  15. PROPERTY PAPERS COMPLETE CHAIN WITH MAP
  1. ALL DIRECTORS PHOTOGRAPH
  2. CLEAR PAN CARD - COMPANY AND ALL DIRECTORS.
  3. ADDRESS PROOF – COMPANY AND DIRECTORS.
  4. LIST OF DIRECTOR & SHARE HOLDER WITH CA CERTIFIED AS ON DATE
  5. MEMORANDOM
  6. ORDER IN HAND AND COMPLETE COPY (if applicable)
  7. GST, SALE, VAT AND SSI REGISTRATION CERTIFICATE.
  8. 1 YEAR GST RETURNS
  9. ALL DIRECTORS INDIVIDUALS ITR & COMPUTATION LAST 3 YEARS.
  10. LAST 3 YEARS COMPLETE FINANCIAL WITH TAX AUDIT REPORT AND ANNEXURE.
  11. PROVISIONAL FINANCIAL FY 2019-20 OR MONTH WISE SALE FIGURE LAST 1 YEAR
  12. COMPANY ALL BANK ACCOUNT STATEMENT 1 YEAR UPDATED.
  13. ALL DIRECTORS SAVING A/C STATEMENT 6 MONTH.
  14. IF RUNNING ANY LOAN – LATEST SANCTION LETTER AND REPAYMENT SCHEDULED.
  15. AGREEMENT TO SELL COPY
  16. PROPERTY PAPERS COMPLETE CHAIN WITH SANCTION MAP
Frequently Asked Questions

What is Supplier's Credit?

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.

Why is Supplier’s Credit required?

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.

Benefits of Suppliers’s Credit:

For Importer

  • Availability of cheaper funds for import of raw materials and capital goods
  • Ease short-term fund pressure as able to get credit
  • Ability to negotiate better price with suppliers
  • Able to meet the Suppliers requirement of payment at sight

 

For Supplier

  • Realize at-sight payment
  • Avoid the risk of importer’s credit by making settlement with LC
Supplier's Credit Process flow:
  • With transaction details importer approaches arranger to get suppliers credit for the transaction
  • Arranger get an offer from overseas bank on the transaction
  • Importer confirms on pricing to overseas bank and gets LC issued from his bank, restricted to overseas bank counters with other required clauses
  • Suppliers ships the goods and submits documents at his bank counters
  • Suppliers Bank sends the documents to Supplier’s Credit Bank.
  • Supplier’s Credit Bank post checking documents
How fast can the supplier get the money from the bank?

The bank will pay suppliers the business day following the day the payment was approved by the buyer and requested by the supplier. 

How is the (discounted) pricing calculated for the supplier? Does this pricing change? Will the supplier be informed of the actual pricing of that moment?

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. 

 

When can the supplier decide whether he will make us of the discounting option? Is there any deadline?

The supplier can request for early payment (discounting) at any moment by logging in onto the platform. There is no deadline. 

Is there any recourse event i.e. Is there a possibility that the supplier has to pay back the money that they have received from the bank?

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.

How quickly can the supplier sign up for supplier finance?

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.

Does the supplier have to change the way it sends its invoices?

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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