Advantages

Importer

Flexible short term financing and incremental trade  credit facility which does not affect bank credit lines not availability

Improved availability of working capital as no bank usage from PO date until maturity date of draft

No need for letters of credit to support purchases or pre-shipment finance

No transaction fees, line fees or interest or other bank related charges

Easy administration as one form streamlined settlement process, minimal paperwork and no administrative costs

Advantages

Exporter

Clear AR sooner by accelerated cash flow

Secured payment

Does not affect bank line

No LC fees and amendments

No trade or production delays due to payment

Increased liquidity and borrowing capacity to grow business