Who is Buyer’s / Supplier’s Credit Consultant ?
Person / Firm who co ordinates with Indian Overseas Branches or Foreign Bank and arranges best possible quote for transactions. They do not directly represent any of these bank. They are also known as Buyers Credit Brokers & Buyers Credit Agents
Scope of Activity
- Assisting you in technical aspect of transaction. (esp. RBI Provision)
- Arranging quote for the transaction
- Get funding done once Letter of Undertaking (LOU) is sent by Indian bank to Foreign bank.
Benefits of using Buyer’s Credit and Supplier’s Credit Consultants
- A decent consultant would have around 50+ banks from where he arranges buyer’s credit quote, thus helps getting best possible quote for the transaction.
- For an Importer doing this type of transaction for first time, consultant can help you with step by step process, thus your transaction goes smoothly.
- Each bank have their own criteria depending on amount, type of transaction, tenure, bank giving letter of comfort etc for doing the transaction. It would reduce trouble of finding right bank with right pricing for each type transaction.
Different factor affecting transaction are:
- Some bank would not funds <$50,000 transaction
- Some would give differential pricing in case it is <50000 and / or <$100000
- Some would not fund less than 180 days transaction,
- Some would not funds EURO/GBP/JPY transaction,
- Some do not offer quote for capital goods
- Say all factors falls under criteria but the bank do not have lines (limits) on your bank or lines have exhausted and thus not able to funds.
- Reduce time in execution of transaction.
- Handling local banks technical queries.
- And many other such criteria.