Buyer’s credit

Buyer’s credit is an loan offered by the overseas bank to the importer.The

overseas bank credits the Indian bank of the importer's account. The
buyer’s credit is reflected as a loan in the balance sheet.
Buyer’s credit benefits:
The exporter gets paid on the due date and importer gets a extended date
for payment of cash. The interest rate for lending is mostly based on the
LIBOR rates.
Advantage:
Importer:
 The importer gets an extended amount of time for repayment, rather than
to pay upfront.
Exporter:
 The payment is made on time i.e on due date.