Q:What is NON-FUND BASED LIMIT?
A:There are various types of non-fund based limits
Bank Guarantee
Letters of Credit( Inland or foreign)
Letters of Comfort for availing the Buyers Credit.
A:There are various types of non-fund based limits
Bank Guarantee
Letters of Credit( Inland or foreign)
Letters of Comfort for availing the Buyers Credit.
Q: What is Buyer's credit ?
A:Buyer's credit is a short term credit available to an importer (buyer) from overseas lenders such as banks and other financial institution for goods they are importing. The overseas banks usually lend the importer (buyer) based on the letter of comfort (a bank guarantee) issued by the importer's bank.
A:Buyer's credit is a short term credit available to an importer (buyer) from overseas lenders such as banks and other financial institution for goods they are importing. The overseas banks usually lend the importer (buyer) based on the letter of comfort (a bank guarantee) issued by the importer's bank.
Q:What is Supplier’s Credit?
A:Supplier’s credit is defined as a financial credit facility that is extended to a local Buyer by the Foreign Seller/ BANK/ Financial institutions, preferably of Seller’s Country. The local bank will issue Usance Bills under the LC for the Importer and in return the Foreign bank will discount this LC.
No comments:
Post a Comment