A New Delhi based industrial chemical importer with an annual turnover of more than INR 170 crores. The company imports chemicals worth more than USD 2 million every month for manufacturing of industrial chemicals. Earlier, the client used to make payments in foreign currency through sight / usance LCs for imports but was unaware of foreign currency Trade credit facilities being provided by Nationalized Indian banks situated overseas.
Myforexeye Value Addition:
As the client was oblivious about the usance LC & supplier’s credit process, Myforexeye team assisted the client through the entire process of supplier’s credit along with the additional clauses of the LC which needs to be incorporated at the time of issuance. Our team assisted the client in discussing with their bank on extending the tenor of the LC required for Supplier’s credit. The client understood the entire process and opened a usance LC under Supplier’s credit route from their bank. We provided guidance to the client on negotiation with their suppliers on agreeing to the process flow of supplier’s credit. Keeping in mind the working capital cycle of the client, the LC needed to be opened for the tenor of 180 days from which 120 days were granted as interest free by the supplier.
Myforexeye team was able to arrange financing from an overseas bank for this transaction at LIBOR+50 bps p.a. After transmission of the LC to the beneficiary bank, the beneficiary disclosed that they always discount the LC on sight with their bank (for 120 days credit period that they extend to our client) and asked the applicant to incorporate the beneficiary’s bank’s name in a clause in Field 41D of the LC. Our negotiating bank also required their name in this clause without which they were not willing to proceed further. Myforexeye team discussed the whole situation with its overseas bank and proposed to client & their supplier to change the clause by replacing the name of the “negotiating bank” with “Any bank” on an exceptional one-time basis. Now the supplier was able to discount the LC with his bank (for 120 days) and applicant can also enjoy the benefits of foreign currency funding (for last 60 days). For future transactions, Myforexeye offered to discount the entire tenor of 180 days as the rates being proposed by us were more competitive than the rate the supplier’s bank was quoting. This offer is being discussed currently between the supplier & our client.
The client was very satisfied with our service and the ability to solve problems even after LC issuance without upsetting their trading partner & yet offer very competitive rates.
07 Sep 2019 03:03 PM
A large importer based in Delhi. The client had started a relationship with Myforexeye 6 months back. The client was getting extremely worried about persistent rupee weakness. Their import payment of USD 1 million was due for September 2019.
17 Aug 2019 05:53 PM
A South Indian Electric Vehicles manufacturer well known for selling battery operated two-wheelers. The company regularly imports various components required to assemble two-wheelers from different geographies of the world. Given the focus on green e
03 Aug 2019 02:13 PM
A Mumbai based X-Ray film importer with import turnover of INR 6 cr had to make an import payment of EUR 1,00,000 against the import of master rolls of x-ray film from Germany. The client deals with a PSU bank which has been charging card rate on all
20 Jul 2019 06:09 PM
A Surat based woven products’ manufacturer and exporter. The firm exports woven fabric, post bags, laminated bags, cement bags, and other industrial packaging products in the international market with an annual export turnover of INR 10 cr. The firm
29 Jun 2019 04:49 PM
Myforexeye has appointed ‘Referral Partners’ (RPs) across the country in order to bring users of foreign exchange closer to our technology platform. The Referral Partner in Kolkata referred close to 10 exporters and importers in last 1 month. Our tea
15 Jun 2019 05:00 PM
Case: A Delhi based leading export house engaged in the manufacturing and exporting of garments. The company has export receivables of around USD 100k – 150k each month. The company had an inward remittance of USD 15,000 recently for which the owner