Often you buy goods especially when you are importing on LC terms which may be at sight or of a particular issuance period. It may happen that on the due date of the payment of LC you might not have adequate cash to meet the obligation and your LC may get devolved. If this happens that this becomes a very big black spot against your name and credit history.
Further in today's market scenario for an importer funds to make payment of his imports against LC's is available at very reasonable rates as compared to its rate of interest payable on cash credit accounts. So it makes more sense to use one's own money to save interest on cash credit account and avail cheaper funds to pay for the dues against the LC.
We can arrange for buyers credit facility in time for the same. This is a facility in which a banker will arrange for payment of the LC on its due date either against blocking of your LC limit, or against a Bank Guarantee from your bankers or even against other security. This is a short term financing in nature but can be extended up to 360 days.
All profit making company having an import against LC can avail this facility.