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Buyers Credit

If you offer Buyers Credit to importers in other countries to procure capital goods and services or other big ticket items then you will need an application that can rise to the challenges of Export Finance - like including the Export Finance agency as the guarantor, handling Foreign Exchange denominated loans along with interest rate spreads, providing for exchange rate risk and paying the exporter once the shipment is made.

 

On the other hand if you arrange for buyers credit for your clients engaged in importing goods from other countries you will need an application that generate the proposals, determine all facilities enjoyed by the client with your bank, forward these proposals and exposure to the appripriate authorities in the central bank for approvals and track the events and fees and charges at every stage of processing.

 

Buyers Credit - Flow

 

What is Buyers Credit?

Buyer's Credit is a short term credit facility extended by banks in a country to overseas buyers's for import of goods from the country where the bank is based. The credit facility is extended against a Letter of Comfort or Bank Guarantee given by the importer's bank. Buyers resort to this form of short term borrowing to take advantage of lower interest rates in countries other than their own. The duration of a Buyer's Credit is between one to two years. 

 

AnyBank Suite and Buyers Credit

Depending on the facilities provided by the institution the AB Suite is equipped to handle modern day functions with a processing speed and scale that's unmatched in the industry today. AB Suite facilitates a smooth process.

  • Business Process Management (BPM) workflows to increase processing throughput
  • It maintains various Interbank offer rates like LIBOR and MIBOR so that the applicable rate can be chosen at the time the contract is being executed. Rates can be updated on a daily basis with no limit on the maintenance of historical rates.
  • AB Suite tracks a customers exposure across all avatars (as a company and as an individual)
  • Rule Engine based limit monitoring triggers events when limits are breached and warning signals are logged.
  • A comprehensive charge based module allows bankers to structure fees and charges like Arranger Fee, Upfront Fee, Management Fee, Handling and Processing Charges, Out of Pocket Expenses and Legal Expenses as a flat rate or as a band rate or as a slab rate with minimum amount due.
  • A comprehensive document generation feature allows generation of letters and forms like the A2 Form  nd Form 15CA and FOrm 15CB
  • A comprehensive document management feature allows uploading of external documents for the client and the against the facility.

Features to Reinvent Your Buyers Credit Functions

Fascinating loan processing features that can improve customer delight.

Inter Bank Offer Rates
  • LIBOR
  • MIBOR

 

Exposure Track
  • Across all Avatars
  • Realtime

 

Limits Monitoring
  • Interest Ceilings
  • Limits on Fees and Charges

 

Fees and Charges
  • Arrangers Fee, Upfront Fee
  • Management Fee, Handling Fee
  • Processing Charges
  • Out of Pocket and Legal expenses

 

Document Generation
  • A2 and 15CB Forms

 

Document Management
  • Customer request Letter
  • Offer Letter
  • Repayment Schedule

 

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About

Sastra Technologies is a technology firm that serves new age Fintech companies, Small Finance Banks, payment Banks, Banks, Non-Banking Financial Companies and Financial Institutions. Our philosophy is to develop products that are cost effective so that our clients derive value using them. For the last 7 years we have done so by embracing cloud technologies and developing unique capabilities that allow us to offer a value proposition that is unmatched in the industry today.