Import and Export Exchange Rate

While trading overseas there is a burden on a business cash flow along with delays and complications. One needs to keep a track of freight charges and tariffs to ensure there is no loss associated while trading overseas.  Trade Financing or import financing specializes in overcoming these challenges and also spares the working capital for investing in the growing businesses. Trade Finance helps to bridge the funding gap between a credit order and the payment to an overseas supplier. This eases the cash flow pressure. There are two types of credit facility to the importer – buyer’s credit and supplier’s credit.  Buyer’s Credit finance means finance for payment of imports arranged by the importer from a bank or a financial institution outside the country. The finance is based on a guarantee given by the importer’s bank. This credit facility may be extended either from an overseas branch of the domestic bank or an international bank in foreign ...