How to Grant a Credit Facility
If we consider about Usance L/C under the Documentary Credit we have to follow these five (05) steps
01. Revolving
Usance L/C Limit- 00days
To import materials for production
Limit
02. Revolving
Acceptance Limit 00days
To give credit period to importer & at the end
confirm the payment of supplier
Limit
03. Revolving
Short Term Loan-00days
To supply financing facility for production
Limit
04. Revolving
Foreign Bill Purchase Facility 00days
At the end of the production to supply immediate
financing
Limit
To
supply financing facility for production
Limit
05.
Revolving Foreign
Bill Purchase Facility 00days
At
the end of the production to supply immediate financing
Limit
If we consider about Slight L/C under the Documentary Credit we have to follow these four (04) steps
To
import materials for production
Limit
02. Revolving
Short Term Loan-00days
To
supply financing facility for production
Limit
03. Revolving
Foreign Bill Purchase Facility-00days
At
the end of the production to supply immediate financing
Limit
If we have to pay some kind of other payment we have to use the above one category and the below mentioned facility
To
pay or settle the import charges/ taxes or others
Limit
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