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 energy, demand for such vehicles is trending upwards rapidly and therefore the company's working capital requirements are surging and the company was looking for funding options available.
Myforexeye Value Addition:
The client was well aware of traditional modes of financing and wanted to lower the overall cost of financing. Client approached Myforexeye team providing solutions for lowering their funding cost. Myforexeye guided the client on the available Trade Credit options (Buyer’s Credit & Supplier’s Credit). The client preferred Buyer’s Credit due to its convenience, however, their bank wasn’t willing to issue a Standby Letter of Credit. Myforexeye then advised the client to get the tenor of Letter of Credit (LC) limits extended so that funding under Supplier’s Credit can be undertaken. Parallely, Myforexeye guided the client on talking points on discussion with their Suppliers to accept usance payable at sigh (UPAS) LCs so that the client can bring down their funding cost.
Keeping in mind the working capital cycle of the client, Myforexeye suggested a 180-day tenor to match the working capital cycle. One of the suppliers was hesitant regarding the arrangement and wanted to be fully assured for his payment and demanded an interest of 2% per month if they didn't receive the payment within 15 days of dispatch of documents from his bank. The LC was opened on a routine basis & documents were dispatched to the funding bank. Myforexeye team assured the timely transmission of the documents by continuously tracking the status of the documents between the beneficiary, funding & LC issuing Bank. Ultimately, the payment was credited to the beneficiary within a week.
The client was happy with the prompt service of Myforexeye team and now he is regularly transacting with multiple suppliers (via Supplier's credit route) using Myforexeye for trade syndication.
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.
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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
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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
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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
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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