New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    In which kind of finance, the buyer is given credit

    under the line of credit by the exporter’s bank and the exporter will be made to export?
    A Supplier’s finance Correct Answer Incorrect Answer
    B Buyer’s finance Correct Answer Incorrect Answer
    C Bill finance Correct Answer Incorrect Answer
    D both a and c Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    There are two types of deferred export finance. Supplier’s finance; and Buyer’s finance. Supplier’s finance in exporting: In the supplier’s finance, the exporter’s bank will finance the exporter so that he will sell the goods on an installment basis to the importer. The exporter will receive the full value and the payment made in installments by the importer will be received by the exporter’s bank. Buyer’s Finance in exporting: In buyer’s finance, the buyer is given credit under the line of credit by the exporter’s bank and the exporter will be made to export.

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