Buyers Credit Meaning amp Process Financeseva

Buyers Credit Meaning & Process | Financeseva

What is buyers credit?

It's a short-term loan offered to buyers from overseas banks to purchase goods at lower rates compared to usual rates. Even exporters are guaranteed their payment will be paid on time without any default taking place.


What you mean by Buyer Credit Eligibility Criteria?

This type of facility is generally offered to importer for the purpose to finance their capital goods wherein overseas lender such as financial institutions aid to support them. These credits are preferred by international trading buyers as it provides the accessibility to purchase goods at lower rates as compared to purchasing via domestic. Lender finance to those buyers who purchase large order with minimal risk.

Buyer Credit Eligibility Criteria
Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover& Creditworthiness ...etc.

Eligibility Criteria
• Individual involved in importing & exporting of goods
• Compliance should be with applicable Trade as per Credit guidelines by their constituents.
• Person resident in India acting as an importer
Note: - You can avail up to 85% of contract value as a loan amount

What are the factors generally affecting Buyer Credit eligibility Criteria?

There are few factors that generally affects Eligibility Criteria as given below: -

Credit History: - Lenders are always ready to fund you, but the major reason for not funding all is that will you able to repay it? Therefore, they look at your past credit history to ensure you future commitments of repayment.So, if there any default payment found your eligibility level get lower.

Due to rejection of previous loan application: - As the factor itself cleared due to rejection of previous loan application, your new loan application gets affected as applying for multiple times, it will lower your credit score which led to reduces the eligibility chances.

It is issued by importer bank on behalf of importer to get funding from overseas bank.


What importer banks will assure in buyer credit?

Importer banks will take responsibility for the money to be paid in case importers fail to make payment to exporters.

What is the cost involved in buyer credit?

Generally, interest rates are common cost applicable on any loan with that other cost are involved such as LIBOR rates, SWIFT charges & issuing SBLC charges.

Do overseas banks require KYC Process?

Yes, it's important overseas banks used to follow this process as per its norms, one needs to complete this KYC process.

How to apply buyer credit online?

It's easy to apply just submit your request letter through online or offline by nearest bank & fill the application form with correct values, make sure you carry all the necessary documents.

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