Trade Finance / Factoring

Trade financing is for short term. (80%) finance granted to exporter after the shipment of goods until the realization of invoice value from the importer. It is easy, quick and also has very nominal ROI. Importer has to pay Trade Finance Company and not the supplier directly for 100% of the invoice value. Trade finance company will refund the balance (20%) after deducting the interest rate to the exporter after the maturity of the invoice from the Importer. This financial practice is strictly adhering to Export.

  • 80% pre-finance granted to exporter after the shipment of goods until the realization of invoice value from the importer
  • Remaining 20% will be retain by the lender and will release once it get paid form the importer after deducting the nominal ROI as agreed upon with exporter
  • Quick, easy and nominal ROI
  • Lender gets the100% payment from the importer after the realization of the goods
  • Private Ltd, Public Ltd , LLP,Proprietor

  • No sensitive and perishable goods
  • Export turnover for the last 36 months to be greater than $300,000 (INR 2Cr)
  • Exporter having IEC code
  • Exporter’s Track record of atleast 15 realized shipment
  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company

Supply chain finance

Supply chain finance is also known as reverse factoring. It is a process in which the supplier raise sale invoice which is approved by the buyer and the financier paid the amount on behalf of the buyer to the supplier. Financier debits the bank account of the buyer with interest at the maturity of invoice.

  • Supplier raise sale invoice which is approved by the buyer and the financier paid the amount on behalf of the buyer to the supplier

  • Supplier gets the payment instantly. It need not have wait for the buyer to pay for the product or it saves time and risk of credit
  • Lender debits the bank account of the buyer with interest at the maturity of invoice
  • Quick & easy
  • Private Ltd, Public Ltd, LLP, Proprietor

     
  • Any sector, Trader,Supplier

  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company

Letter of credit (LC)

It is issued by the bank or financial institution and confirms that the seller will receive the payment dully and if not the bank or financial institution will bear the cost of the liability to the seller in case the buyer becomes defaulter. This is mainly issued and used while making international trading. It is issued, discounted/monetized or enhanced if the need arise.

  • Importer can pay it to the exporter through this instrument
  • Quite easy to issue
  • It can be discounted, monetize or enhanced as per the requirement
  • Quick & easy
  • Private Ltd, Public Ltd, LLP, Proprietor

  • Business continuity proof not less than 3 years,

    Business related to export and import of the goods

  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company

Standby letter of credit (SBLC)

This Letter of credit is issued for enterprise who is seeking a loan or any contract but don't have sufficient credit standing. In this bank or financial institution will need a guarantee from another party (third party). This is in the form of letter (standby letter) that is issue by another financial institution or bank. ​ The enterprise will produce and do all necessary formalities to support the non-performance of the buyer to obtain the payment through the SBLC. Now the bank or financial institution will release the payment after the verification of the documents offered comply with the terms of contract. It is issued, discounted or monetized or enhanced as per the requirement.

  • User insufficient credit standing can go for this financial instrument to pay to its vendors
  • It can be discounted, monetize or enhanced as per the requirement
  • Quick & easy
  • Private Ltd, Public Ltd, LLP, Proprietor

  • Business continuity proof not less than 3 years, Any business/Export, Import
  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company

Forfeiting

In this system of financing the lender out rightly purchase the credit instruments /notes (drafts, bills of exchange, and other instruments). The benefit in this system is as follows:- Importer: This finance is nonrecourse one. Which means the liability of the importer is minimized he does not have to pay extra even if the lender cannot recover payment from the exporter on the basis of credit instruments/notes which it has purchased from the importer.. Exporter: Exporter gets instant fund on presentation of relevant documents. Lender/Forfeiter: The importer is liable for the cost of the contract and receives credit for specified years and at certain per cent interest. The lender/forfeiter deducts interest at an agreed rate for credit period. The lender/forfeiter takes over responsibility for claiming the debt from the importer. It holds the notes until maturity, or sells them to another investor. The holder of the notes presents each note to the bank at which they are payable, as that fall due. ​ Thus, the debt instruments are drawn by the exporter, accepted by the importer, and will bear an avail or unconditional guarantee, issue by the importer’s bank.

  • Importer need not have to worry about the repayment as it is non-recourse finance
  • Lender purchase the credit instruments/notes out rightly. That means it doesn’t need to wait for the importer to payback the amount with interest
  • Exporter can get its payment instantly on presentation of the document
  • Quick & easy
  • Private Ltd, Public Ltd, LLP, Proprietor

  • Business continuity proof not less than 3 years,Export, Import
  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company

Buyer's credit

Buyer’s credit helps in doing import payment to exporter (overseas supplier). Importer can repay the lender later on. Financing is done specifically from local branch instantly that too in leading currencies without any hassle.

  • Importer gets the payment upfront
  • Importer can repay the lender later on
  • Financing is done from the local branch by the lender
  • Quick & easy
  • Private Ltd, Public Ltd, LLP,Proprietor

  • Exporter
  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company

Ussance letter of credit (ULC)

Ussance Letter Credit is a letter of credit payable at a predetermined time. It is quite different from normal sight letter of credit. If the documents are appropriate and comply with the terms of the LC; the issuing bank accepts the draft and pays on maturity date as per the terms of the LC. The buyer receives the product instantly and payment is made later and thus avail a grace period for payment.

  • Importer receives the product instantly and payment is made later and thus avail a grace period for payment
  • Quick, easy
  • Private Ltd, Public Ltd, LLP, Proprietor

  • Business continuity proof not less than 3 years,Any

    business/Export, Import

  • KYC
  • 3 years balance sheet, P&L with audit report
  • 3 years I.T.R of the company
  • IEC License code of the exporter
  • Insurance if any
  • Purchase order/underlying commercial contract
  • Assignment of receivables and acknowledgement thereof
  • 1 year bank statement of the company