Effective use of trade finance is integral to managing your trade / FX exposures and cash flows. We arrange import finance / credit roll-over to help clients save interest costs, avoid adverse rate of exchange and benefit from interest rate arbitrage.
- Finance in foreign currency (in all major currencies)
- Import finance at LIBOR related rates
- Security: LC / letter of comfort from domestic bank
- Credit period: ranging from 3 months to 1 year
- Can be arranged on similar terms under ECA facility from foreign bank
- Alternate means of finance can be explored, say, without needing issue of LC or withy fixed exchange rate
- RBI approved instruments for import financing.
- Interest Rate Arbitrage: Libor rates are much lower than domestic interest rates.
- Cost of Funds: LIBOR + Bank Spread + Forward premium (hedging cost)
- No with holding tax
- The bank spread depends upon the fund availability and is negotiable.
- Mecklai can negotiate the best rates given the higher volume generated by large number of client base.
- We provide hassle free solution for clients and do end-to-end follow up from getting the quote till the financing is done.
- We can suggest alternate structures to minimize hedging cost / optimize benefits from the market
Our relationships with domestic and global banks makes the facility accessible to small and medium enterprises (SMEs), who generally don’t get competitive rates.
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