Start learning 50% faster. Sign in now
A buyer's credit is a loan facility extended to an importer by a bank or financial institution to finance the purchase of capital goods or services and other big-ticket items. Buyer’s credit is a very useful mode of financing in international trade, since foreign buyers seldom pay cash for large purchases, while few exporters have the capacity to extend substantial amounts of long-term credit to their buyers. A buyer’s credit facility involves a bank that can extend credit to the importer, as well as an export finance agency based in the exporter's country that guarantees the loan. Export credit is a loan facility extended to an exporter, by a bank, in the exporter's country. Trade credit is the credit extended by a supplier to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organizations as a source of short-term financing. Import finance also helps to bridge the gap between the payment and receiving of goods imported. Letter of Credit is one of the forms of import finance which is payment mode used in the International Trade between importer and exporter to cover third-party credit risk. What this means is that if the importer defaults, his bank will have to pay on his behalf. Import finance differs from the Buyers credit as buyers credit is a funding mechanism used by importer to funds his transaction and is a on-balance sheet loan for the bank while letter of credit is an off-balance sheet non-fund based form of financing.
_______________ has signed United Nations supported Principles for Responsible Investment (UNPRI) demonstrating its commitment towards Environment, Soci...
GST collection grew 13 percent in March to ______— the second-highest mop-up since the rollout of the indirect tax regime.
Recently SEBI imposed a penalty of Rs 1 crore on which of the followings company for misutilization of client securities.?
Under the Nasha Mukt Bharat Abhiyaan, what is the specific focus area mentioned in the MoU between the Department of Social Justice and Empowerment and ...
What is the main objective of celebrating Statistics Day on June 29 in India?
Which of the following organization gets DSCI AISS Award for ‘Best Security Practices in Government Sector’?
Consider the following statement about “Indira Gandhi Prize for Peace”.
1. It is awarded to individuals only
2. Recently, it was j...
Which of the following projects was not inaugurated during PM Modi’s visit to Mauritius?
In a move to deepen the bond market, the Securities and Exchange Board of India (SEBI) has introduced sops for large corporates (LCs), which have raised...
How much did the Centre earmark for Phase III of the PMGSY (Pradhan Mantri Gram Sadak Yojana)?