A New Delhi based electronic goods importer. The working capital cycle of the client is 180 days but the Import payments terms are at sight against DP documents. The client used to utilize the Cash Credit facility with a PSU Bank. The client had applied to borrow in foreign currency, but their application for availing Buyer's credit was put on hold as the said bank had not started issuing SBLC till date. The client consulted one of their business associates, who suggested Myforexeye to them for further assistance on the process of availing Buyer's credit.
Myforexeye Value Addition:
The client approached Myforexeye and discussed the issue they were facing. As they elaborated the case, our personnel showcased the ongoing transactions with other banks (on a no-name basis) and explained the entire process of availing funds in foreign currency. The client then requested Myforexeye team to accompany them during their visit to their bank and assist them in convincing their bank to undertake this request of availing buyer's credit against their imports. Our team approached the bank with the client and showcased the relevant formalities required for the banker to issue SBLC (MT 760). Our team also introduced the local bank to the overseas funding bank (which is also a PSU bank) to provide comfort. The local bank was very cooperative and understood the process, formalities, and documentation and since this was their first SBLC backed Buyer's Credit transaction, the bank proceeded to take necessary internal approvals from Compliance & Head Office. This whole process took a month to accomplish.
Once the process was approved at the local bank’s end, the client was able to borrow funds in foreign currency at a substantially cheaper rate and secure the loan somewhat matching their working capital cycle. The client was delighted with the assistance provided by Myforexeye team in not just advising on the solution and arrangement of cheaper funding, but mainly towards convincing their long-standing bankers on getting it operational.
19 May 2020 12:06 PM
A cloth exporter based out of Tirupur booked around $100,000 of export forwards per month. The client’s bank margin was fixed at 10 paise. The bank had been quoting a cash spot rate of 10 paise above the margin. The client had recently signed our “FX
16 Nov 2019 04:30 PM
Delhi based manufacturers of institutional and home furnishings, fabrics and hospital textiles exporter with market base across the country and other Asian and European nations. The client had recently started using our TPO service and had to book a
05 Oct 2019 05:30 PM
A Pune based industrial Instruments importer engaged in manufacturing of Electrical/ Instrumentation Systems. The client regularly avails import funding in foreign currency from Overseas branches of Indian Origin Banks. The client shared a transactio
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