In which kind of finance, the buyer is given credit

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.