Difference between Buyer’s Credit and Supplier’s Credit

Criteria Buyers Credit Suppliers Credit
Mode of Payment Can be used for payment mode like LC, LC usance, DA, DP, & Direct Doc Can be used only in case of LC transactions
LC Clauses No additional clauses or Amendment is required in LC At the time of opening LC or amending LC clauses given by Suppliers Credit bank needs to be changed. Like Negotiation Clause,  Confirmation Clause, Reimbursement Clause
Arrangement Can be arranged after documents have reached the bank or documents are received by importer directly Has to be arranged at the time of opening LC or before shipment of goods
Cost Interest Cost LC Advising Cost, LC Amendment Charges, Document Processing Charges, Courier Charges, Conformation Cost and Interest Cost
Advertisements

One thought on “Difference between Buyer’s Credit and Supplier’s Credit”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s