- Importer requests issue of Purchase Orders.
- Bank issues Purchase Orders.
- Exporter views Purchase Order.
- Exporter accepts Purchase Order.
- Bank registers bill under accepted Purchase Order and processes the same.
Supply Chain Financing
- A Purchase Order is initiated by the Importer and sent to his banker.
- The Bank approves the same and makes it available for viewing by Exporter.
- The Exporter conveys his Approval.
- Exporter ships the goods and initiates document submission to the Bank.
- The Bank registers the same and informs the Importer.
- Importer accepts the document and REQUESTS THE BANK to make immediate payment.
- The Bank pays the Exporter immediately.
- On the maturity date, the Bank recovers the Bill/Invoice value from Importer with interests and costs applicable thereon.
Avalisation, Supplier Credit and Buyer Credit
- Import Collection registered by bank.
- Avalisation request accepted. Similarly request for Supper/Buyer Credit accepted.
- If necessary accepted bill is discounted by bank.
- Payment made in due course.