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Trade Finance Services | Myforexeye Fintech Pvt Ltd

Trade finance Services is generally used to manage solvency and liquidity. Trade finance on the other hand helps exporters and importers to protect them against international tradeu2019s unique inherent risks, such as currency fluctuations, political instability, issues of non-payment or creditworthiness of one of the parties involved. Trade finance helps businesses in increasing business and their revenue through trade. Without trade credit facility, any business can fall behind on payments and lose track of business due to payment delays.Myforexeye as India's noticeable Fintech Company offers undeniable Corporate Forex and Trade fund administrations to MSMEs and MNCs in India.<br>Visit: https://www.myforexeye.com/trade-finance-services<br>

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Trade Finance Services | Myforexeye Fintech Pvt Ltd

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  1. Seven Important Facts That You Should Know About Trade Finance Products and Services Banks are permitted to approve trade credits up to USD 20 million per transaction for the imports permissible with maturity period up to one year from date of shipment. For import of capital good permissible under DGFT, bank may approve credit up to USD 20 million per import transaction for the imports with maturity period of more than one year upto five years from date of shipment for industries of all sectors . The ab-initio contract period should be six months for all trades credits. It means Buyers Credit For Capital Goods can be taken and roll over in multiple of six months up to five years. No roll over or extension will be permitted for trade credits beyond the permissible period. Banks can issue letter of credit (LC) or letter of undertaking (LoU) or letter of comfort (LoC) in favour of overseas supplier, bank or financial institutions up to USD 20 million per transaction for a period of up to one year for non-capital goods and up to three years for capital goods permitted under Foreign Trade Policy. Letter Of Credit h to be co-terminus with the period of credit reckoned from date of shipment and are issued by Banks subject to prudential norms issued by RBI from time to time. Banks have stopped allowing credit to an importer beyond operating cycle tenure.

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