:: Basis Points Consultancy Services ::

EXPORT BILL DISCOUNTING

Today's highly competitive business environment often requires exporters in India to provide a buyer with credit terms in order to get the business. But, every such credit facility given to the buyers presents a potential default risk to the exporters. This credit default risk for an exporter could arise anytime during the life of that credit facility offered by the exporter.

Besides the credit risk, the exporters also have Forex risk, bank limits management and liquidity constraints by providing such credit facilities to the buyers.

In our endeavour to help Indian corporates to overcome this problem, BPCS extends Export funding facilities. We have an excellent working arrangement with many reputed global banks with branches in India which gives us the flexibility to arrange discounting of Export Letters of Credit (L/C's) to our clients at very competitive rates.

This Export LC discounting facility from BPCS offers the exporters the following:

Assured payment against compliant presentation of documents in India
Protection against counterparty / buyer risk, buyer's bank risk and any other risk
Ensures an immediate payment without recourse
No blocking of your regular bill discounting limits, till the maturity of the LC
No Foreign Exchange / Interest Rate Risk anymore
Discounting possible both in Indian Rupee (PLR Linked) and Foreign Currency (LIBOR Linked)
Competitive rates resulting in cheaper export credit
The export bills discounted are no more a contingent liability in your Balance Sheet (like in normal bill discounting) because this product is on a without recourse basis

The overall costing of the export LC discounting will depend on the country of exports and the LC issuing bank.