What is Buyer's Credit
We are team of expert Buyer’s Credit Services Consultants that provide best solution in Delhi, India.
Buyer’s credit is a loan facility extended to an importer by a bank or financial institution to finance the purchase of capital goods or services and other big-ticket items. Buyer’s credit is a very useful mode of financing in international trade, since foreign buyers seldom pay cash for large purchases, while few exporters have the capacity to extend substantial amounts of long-term credit to their buyers.This facility involves a bank that can extend credit to the importer, as well as an export finance agency based in the exporter’s country that guarantees the loan. Since buyer’s credit involves multiple parties and cross-border legalities, it is generally only available for large export orders, with a minimum threshold of a few amount.
How Does Buyer's Credit Work?
The buyer’s credit process typically has the following steps: The exporter enters into a commercial contract with the foreign buyer that specifies the goods or services being supplied, prices, payment terms, etc. The buyer obtains credit from a bank or financial institution to finance the purchase. An export credit agency based in the exporter’s country provides a guarantee to the lending bank covering the risk of default by the buyer. Once the exporter ships the goods, the lending bank pays the exporter as per the terms of the contract with the buyer. The buyer makes principal and interest payments to the lending bank according to the terms of the loan agreement until the loan has been repaid in full. We are one of the top Buyer’s Credit Services consultants in Delhi.
Meeting Corporate Financial Requirements such as
- a. Project Finance
- b. Fund Based and Non Fund based Working Capital requirements
- c. Term Lending such as Corporate Loan
We help our clients in raising finance through money market instruments such as Commercial Paper, Non Convertible Debentures and Bonds.
Raising Funds in a structured manner such as Loan against Shares, Loan against Property, Share Placement, Promoter Funding, Pre-IPO Funding and Mezzanine Funding.
We raise Private Equity for the PE Fund Houses and corporate entities.
We facilitate Raising Foreign Funds in the form of
a. Foreign Loans such as External Commercial Borrowings (ECB), FCCB and Buyers Credit
b. Equity: mainly in the form of FDI