Buyer's Credit - Benefits To Importer

Benefits To Importer

1. The exporter gets paid on due date; whereas importer gets extended date for making an import payment as per the cash flows
2. The importer can deal with exporter on sight basis, negotiate a better discount and use the buyers credit route to avail financing.
3. The funding currency can be in any FCY (USD, GBP, EURO, JPY etc.) depending on the choice of the customer.
4. The importer can use this financing for any form of trade viz. open account, collections, or LCs.
5. The currency of imports can be different from the funding currency, which enables importers to take a favourable view of a particular currency.