A North India based steel products manufacturer with a top line of INR 20+ billion and import volume of INR 10+ billion. Client was facing difficulties in financing his imports post the discontinuance of Letter of Undertaking (LOU) backed Buyer’s Credit. Raising financing in INR was expensive and hence client availed financing facilities provided by his supplier. Albeit more cost effective than INR based borrowing, this was still more expensive than the traditional Buyer’s Credit facility. Additionally, the client had no control over the process as it was supplier driven despite the interest cost being borne by the client.
Myforexeye value addition:
The client approached Myforexeye with the above problem and on a pilot basis, engaged with us on two transactions, in two currencies – USD & EUR. Using an Usance Letter of Credit Payable at Sight (UPAS L/C), Myforexeye arranged funding from two large relationship banks based in Europe (for Euro transaction) and Asia (for USD transaction).
We used Reimbursement Authorisation route to avoid multiple negotiations between client and their supplier. Closing the deal under L+60bps for a 6-month tenor, the client was able to save a shade above 1% p.a.in financing cost.
The client was delighted at this saving and is currently negotiating with suppliers to arrange funding at the client’s end (via Supplier’s Credit product) using Myforexeye for syndication.
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
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
01 Jun 2019 03:38 PM
A Surat based client engaged in manufacturing and wholesaling of a wide range of polyester yarn. The company exports products to Turkey, Jordan, Gulf Regions and has foreign currency receivables in the U.S. dollar. The client had recently subscribed
17 May 2019 04:25 PM
Myforexeye was approached by a firm at Surat that is run a young Chartered Accountant who had been following Myforexeye keenly for a while before approaching us for a partnership. We have appointed him as an Affiliate to promote services offered by M