What is LCBD purchase? How it differs from LCBD Sale? Letter of credit bill discounting facility.

Purchase LCBD Vs. Sales LCBD, What is exactly these facilities, what is the process underlying these facilities, Why these loan facilities are used? Let us try to answer these questions in this video.
Letter of credit bill discounting is a very famous product across all banking Industry. There are two types of facilities:
- Letter of credit bill discounting- Sales Side
- Letter of credit bill discounting- Purchase Side
I have already covered Letter of credit bill discounting from Sales side in lecture no. 33, Link is as below:
• Lecture 33: Foreign b...
Now i am covering the other facility which is LCBD from purchase side angle.
Hope you all shall like this video. Please watch till the end.
#letterofcredit #inlandlc #foreignLC #billdiscounting #invoicediscounting #billpurchase #letterofcreditbilldiscounting #discounting #ankushjain #caankushjain #workingcapitalfinance #loanprouct #workingcapitalloanproduct
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[@sunilkumar-mm9dl]

Sir really it's a clean and great explanation sir tnq for this video and it helped me a lot in knowing the concept of Lc and Lcbd

[@AnkushJain]

Thank you

[@venkateshkattela5330]

A big thank you to Ankush ji. I was looking for this information. Your presentations on clear concepts of international trade instruments are at the top level. I am benefitted with your knowledge sharing. Thanks again.

[@AnkushJain]

Thank you

[@RajanKumar-gh2qx]

Regarding the arbitrgae point and the recent practices of the issuing bank offering the LCBD Purchase discounting. I have 2 queries:
1. How is the ROI on the LC on lower side than CC facility? I assume it must also be derived on RLLR plus spread.
2. When assessing the CC for the same client who operates partly on LC too, will if affect the DP of the client? As tye client NET PAID stock shall be affected due to the LCBD.

[@AnkushJain]

I will check for ROI point while for second question, yes it will impact the DP

[@PristineAnimation]

Informative..

[@AnkushJain]

Thank you

[@gulfamali8194]

Sir , what is standby buyers letter of credit (SBLC)
Is there any video available on this topic???

[@AnkushJain]

ruclips.net/video/XGnur9gLFmo/видео.htmlsi=y8Ex_gjjccKkOgIY

[@aashulrajani]

A big thank you Sir..your lectures are really helpful..do you have a summary of these notes or can you tell me a book which i can refer for credit manager working capital profile?
Thanks in advance..

[@AnkushJain]

Thank you. No such summary available

[@DadhichAssociates]

Nice

[@AnkushJain]

Thank you

[@swapnajak5718]

Contractor profile me cash budget assessment kaise karna hai uska detailed explanation video banaye sirji.

[@AnkushJain]

Ok

[@rishabhjain2804]

Sir please make a video on applicability and procedure of SARFAESI Act.

[@AnkushJain]

Ok

[@sonupal-pv2qk]

Hi sir,
Please tell how to calculate FOIR to calculate TL calculation

[@AnkushJain]

ruclips.net/video/kqiYQ9WSFDI/видео.htmlsi=E4zpy1CxtauMCoN4

[@kashish57485]

Sir want to clear my 2 doubts,
1. What if amount in balance sheet mismatch with GST return
2. Though customer is having good tradelines in cibil and cibil score is good,,, FOIR 40% but have lots of enquiries in that case what should be do other than PD

[@AnkushJain]

1. Which amount?
2. That is concerning, if customer says he didn't avail any loan from them then it is also a concern which means other banks are rejecting the file. Otherwise if customer is not stating then their proposed obligation should be given due consideration in eligibility

[@kashish57485]

1. Which amount- Sir if total Amount cr side shows 50 Lakhs but in GST return file highlights only 30 Lakhs…. What can be the concerned reasons of mismatch in amount

[@AnkushJain]

It depends, only customer can explain, could be some sales are exempt from gst, could be bogus balance sheet, could be error in return and later correct return filed

[@kashish57485]

sir, can you please make a video snapshot of credit underwriting on TW/3WL/ CMV

[@abhishekagarwal8896]

Sir interest sasta kase pdega LCBD me.. isne to usko 5-6% 90 days ya max 180 days k lie dena b ..jabki CC me 9% annual rate h... not for 6 months

[@AnkushJain]

Ye bhi annual hai bs 90 days mein proportional ho jayega

[@abhishekagarwal8896]

@@AnkushJain got it

[@IMRANANSARI-yo1mm]

Sir, does post shipment and LCBD are same or there is any difference between both

[@AnkushJain]

LCBD is for domestic sales.. Post shipment is for export sales

[@umeshjoshi7523]

Sir LCBD Sales facility ko hi bill negotiation (IBN/FBN) kehte hai kya.

[@AnkushJain]

Jab foreign ki LC discount karni ho to to usko FBN kehte hain

[@himani051]

Sir lcbd purchase mein jo lc discount hui h wo sight lc h ya usanance lc

[@AnkushJain]

Usance

[@paras1128]

sir plz suggest any book or material that can be referred for understanding credit concepts.

[@AnkushJain]

Hands on credit by Dr. D d Mukherjee

[@paras1128]

@AnkushJain Okay, thankq so much sir 👍🏻

[@AnkushJain]

👍👍

[@sonupal-pv2qk]

Hi sir ,
How to calculate working capital days

[@AnkushJain]

ruclips.net/video/QEj6EHVC6rI/видео.htmlsi=7ODpTFghI8bcAJsT

[@MONUKUMAR-xu7xg]

❤❤❤❤

[@AnkushJain]

Thank you

[@prabhatkumar4349]

But sir this is as good as Buyers credit facility and there is no difference between the two

[@AnkushJain]

How?