Buyer credit

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Buyer credit

A financing provided to a buyer to pay for the supply of goods or services usually by an exporting country or by the supplier company.

Buyer Credit

A credit given to an importer's account by the recipient of a letter of credit (that is, a bank) in exchange for on-time payment. The originator of the letter of credit (the importer's own bank) may negotiate with the recipient for buyer credits.
References in periodicals archive ?
ECBs refer to commercial loans in the form of bank loans, securitised instruments (floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares), buyers' credit, suppliers' credit availed of from non-resident lenders with a minimum average maturity of 3 years.
The bank has alleged in the complaint that a fraudulent issuance of Letters of Undertakings (LOU) took place on January 16, 2018 for and on behalf of the accused firms, which approached the bank and presented a set of import documents to the branch with a request to allow buyers' credit for making payment to overseas suppliers.
The bank officials requested the firms to furnish 100 per cent cash margin for LOU for raising buyers' credit. The firms contested this, saying that they availed this facility in the past also, the complaint, now a part of the FIR, has alleged.
Within a week, Ministry of Shipping rushed a Cabinet plan proposing that the Export Development Fund (EDF) be allowed to raise and provide the 150-million buyers' credit facility denominated in Indian currency (the Rupee) to Iran.
AFG is accused of failing to make mortgage payments on the properties, ruining the straw buyers' credit ratings and sending the sellers' homes into foreclosure.
For importers, buyers' credit allows existing credit lines with their local commercial banks to be preserved and used for standard financing requirements such as working capital.
The bank has alleged in the complaint that a fraudulent issuance of Letters of Undertakings (LOU) took place on January 16, 2018, for and on behalf of the accused firms, which approached the bank and presented a set of import documents to the branch with a request to allow buyers' credit for making payment to overseas suppliers.
The bank officials requested the firms to furnish 100 per cent cash margin for LOU for raising buyers' credit. The firms contested this, saying that they had availed this facility in the past, the complaint, now a part of the FIR, has alleged.
The Bangladesh Power Development Board (BPDB) has carried out the projects at buyers' credit from a Chinese and a Hong Kong-based commercial banks to supply more electricity to the national grid.
The interest rate for the buyers' credit from the Chinese ICBC bank will be closely 4.0 per cent for its $224 million lending to the government.
The funds are provided as a buyers' credits for exports.