Foreign Bill Purchase (FBP) is a short-term credit facility offered to exporters to help manage their cash flow needs while awaiting payment from foreign buyers. The facility is extended against export bills drawn under Letters of Credit (LC) or against export contracts, enabling exporters to access working capital without delay.
This facility is designed to provide immediate liquidity to exporters by allowing them to receive funds before the actual payment is realized from overseas buyers. It ensures seamless business operations and supports exporters in managing their routine financial obligations effectively.
Key Benefits:
Available against export bills under LC or firm contracts
Improves working capital management
Ensures cash flow continuity during the payment processing cycle
Helps exporters maintain delivery schedules and operational efficiency