Trade Advisory

Trade Advisory

We offer customized solutions to our customers based upon the type and amount of risk that they are facing in the foreign exchange markets. Our trade finance desk assists clients in lowering their costs of borrowing by leveraging technology & financier relationships. Our Trade Finance products include Supplier's Credit, Buyer's Credit, Export Factoring and Export LC Discounting

Supplier Credit

Supplier's credit is an effective method and structure of financing imports into India using a usance letter of credit. Importers are provided with funds at LIBOR linked rates by overseas banks and financial institutions which are much more economical as compared to locally available funding. We arrange financing under Supplier's credit from 100+ banks

Buyers Credit

Buyer's Credit is considered beneficial as it ensures timely payment to the exporter and gives extra time to the importer to arrange funds, thus helping in effective management of funds. The importer's bank issue a standby letter of credit favouring an overseas lender financing in LIBOR based rates is comparatively cost effective for the importer. We arrange financing for buyer's credit from multiple overseas lenders.

Export factoring

It is financing of export documents that are sent directly to buyer or sent to the buyer via the banking channels (and are not under a Letter of Credit). We arrange for funding for upto 80% of the invoice value on a post shipment basis without collateral.

Export LC Discounting

This is discounting of export bills / invoices under Letter of credit on a post acceptance. Funds are made available to exporter's bank via banking channels. We arrange financing from a host of foreign & domestic banks

Export LC Confirmation

In this LC , whenever an exporter has a risk to his payment or trust deficit from the importer bank rating LC confirmation from top banks come in picture where a 3rd Bank takes the guarantee to pay against the LC if the importer bank denies to pay on due date .

Domestic LC Discounting

This is discounting of Inland LC , Applicant want to pay after 180 days but seller want the payment at sight basis . Banks discount these LC on Bank to Bank Lines , no collateral is required for such discounting .Discounting is done on MCLR rates and approved spread of client .

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Case Study:

1. Client issued a foreign LC of 180 days to import the material from HK , but the Seller want to get paid at Sight since he wanted to payment on the LC acceptance only . We added few clauses in the LC while opening from the issuing bank , the seller routed the documents as per LC clauses and got the payment within days of the Acceptance from the applicant bank .

2. One of our Export client based in Noida SEZ needed to discount the export bills which was not backed by Letter of Credit , we got those bills discounted from one of the factoring agencies based in UK . Our exporter got the 80% of the invoice value within 7 days from Bill of lading @ Pricing of 5% pa .

3. A client based out in Delhi , running a publication house got an LC of USD 5 lacs from one of the African Bank , but his banker did not disbursed the pre shipment against it since the rating of the bank was not good . We got a 3rd bank from UK who took the confirmation to pay the Exporter if the issuing bank denies . After adding the 3rd Bank , client easily got the Pre shipment Credit from his bank @ L+150 bps .