Cross Border Export Receivables Discounting

An arrangement for providing credit to an Overseas Seller (Exporter) who has sold a product to an Indian Buyer (Importer) on open account credit terms. Bank pays the Seller against the Assignment of the Receivables under the Sales Contract, and the Buyer pays to the Bank on due date. It’s a financial solution that allows Seller to convert receivable into immediate cash by assigning the receivables to Bank. The Bank typically funds the value of the receivables less discount to the Seller and receives full payment from the Buyer on due date.

Features & Benefits

This product is offered at Singapore, United Arab Emirates and GIFT City branches

Provides immediate payment & liquidity to the Sellers, allowing them to meet operational costs and ongoing Capex

Mitigates the Country & Credit risk associated with sales to Indian Buyers

Access curated trade finance solution at better terms, benefiting from creditworthiness of the Buyer

Overseas Sellers can explore relationships with new Indian Customers and expand their market size in India

Enhance Days Sales Outstanding (DSO) and Days Payable Outstanding (DPO) metrics of the Buyer

How it Works?

01
Seller enters into a Master Receivable Purchase Agreement (MRPA) with Bank
02
Seller performs as per Contract and requests the Bank to discount the Invoices under these Contracts
03
Seller notifies the Buyer vide a notice of assignment regarding its arrangement with Bank
04
Seller notifies the Buyer vide a notice of assignment regarding its arrangement with Bank
05
On due date, Buyers makes payment directly to Bank

Scroll To Top

Internet Banking

Mobile Banking

CMS and Payment Solution

Cards

Power Access

Remit Money

EDGE REWARDS

FASTag