Since most importers have already offered tangible property as security for their existing facilities, they are unable to offer additional security to obtain further credit facilities to finance their increased working capital requirements. A solution to this problem is to provide storage facilities to customers in warehouses directly controlled by the bank and offer credit facilities against the goods stored in those warehouses. Banks can reimburse up to 100% of the import bill value once the good are delivered and stored in the warehouse.
Businesses who are engaged in imports, exports, manufacturing and trading are eligible for this facility.
(Apart from the nature of the business the firm is involved in, general terms and conditions on obtaining a credit facility of the bank is applicable.)
The Commodity offered must have qualities which assure a measure of marketability. Accordingly, advances against merchandise should be made principally against:
The bank should ensure that the prospective borrower has a good
title to the goods to be pledged.
Instant working capital funding, safety of the goods guaranteed by a professional logistics service provider and hassle free loading and unloading.
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