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info@castoncorporateadvisory.in

116,FF,Didar House Building,
6,DLF Industrial Area
Moti Nagar,
New Delhi-110015

+91.11.42352200

Important Links

Our services

Need Assistance?

Tell us about it

Important Links

Our Services

info@castoncorporateadvisory.in

116, FF, Didar House Building,
DLF Industrial Area
Moti Nagar,
New Delhi-110015

+91.11.42352200

LC discounting services

LC (Letter of Credit) discounting services involve the process of selling a letter of credit at a discount to a financial institution before its maturity date..

  • LC discounting services in Delhi

It's essential for exporters to carefully consider the cost of discounting the LC, including any fees, interest charges, or the discount rate applied by the financial institution. Additionally, exporters should ensure that the terms of the LC are favorable and that they comply with all requirements to avoid any discrepancies or delays in payment.

  • Working

  • A buyer (importer) and seller (exporter) agree to engage in a trade transaction. The buyer arranges for a letter of credit to be issued by their bank (issuing bank), which serves as a guarantee of payment to the seller upon the presentation of compliant shipping documents.
  • Instead of waiting for the LC's maturity date (when the payment is due), the exporter may choose to sell the LC to a financial institution (usually a bank) at a discounted rate. The financial institution pays the exporter the discounted value of the LC upfront, minus any fees or charges.
  • Upon receiving the compliant shipping documents, the financial institution presents them to the issuing bank and receives the full payment specified in the LC upon maturity. The financial institution makes a profit from the difference between the discounted amount paid to the exporter and the full payment received from the issuing bank.

  • Benefits

Exporters receive immediate cash upon selling the LC, which can help improve cash flow and fund ongoing operations or new business opportunities

By selling the LC to a financial institution, exporters transfer the risk of non-payment or delayed payment to the financial institution, which assumes the risk associated with the buyer's creditworthiness or any other potential issues.

This is where we add value.

Our Services.

'Industries we serve'

We do what we do best

Why us?

“

We have been availing Caston’s trade finance services since more than 10 years now and it is absolute pleasure to work with the team. They proactively manage best interest rates for our trade finance requirements and outsource the pain to set up and negotiate the bills with the banks every time.

B

Devkant Aggarwal
CFO, Bindlas Duplex Limited
5/5

“

We have been availing Caston’s trade finance services since more than 10 years now and it is absolute pleasure to work with the team. They proactively manage best interest rates for our trade finance requirements and outsource the pain to set up and negotiate the bills with the banks every time.

B

Devkant Aggarwal
CFO, Bindlas Duplex Limited
5/5

“

We have been working with Caston for more than a year now. Our start point was to get a financial model to manage our bar inventory on the prescribed lines. The model evolved to our requirements and so our relationship with Caston. Their team has proven to be extremely helpful in managing the inventory risk and hence our monthly profitability. As of today, we use Caston for all our operational and strategic financial modeling requirements.

Vineet Kalra
MD, K&G Hospitality Limited,
United Kingdom
5/5

“

We have been working with Caston for more than a year now. Our start point was to get a financial model to manage our bar inventory on the prescribed lines. The model evolved to our requirements and so our relationship with Caston. Their team has proven to be extremely helpful in managing the inventory risk and hence our monthly profitability. As of today, we use Caston for all our operational and strategic financial modeling requirements.

Vineet Kalra
MD, K&G Hospitality Limited,
United Kingdom
5/5

“

We had hired Caston to prepare for an acquisition, and help us with due diligence, and I was super happy and satisfied with the quality of work and high professionalism, I now take their advice for all ourstrategic and financial analysis requirements. They are very responsible and always deliver the task quickly which augments the pace of our decision making.

Zev Ostreicher
CFO, Witz Group, USA
5/5

“

We had hired Caston to prepare for an acquisition, and help us with due diligence, and I was super happy and satisfied with the quality of work and high professionalism, I now take their advice for all ourstrategic and financial analysis requirements. They are very responsible and always deliver the task quickly which augments the pace of our decision making.

Zev Ostreicher
CFO, Witz Group, USA
5/5

“

We had hired Caston to sail through our first ever equity fund raising round and also prepare us for the extensive financial due diligence. Caston’s team handled the assignment professionally and was prompt in responding to the investor’s queries from time to time. Caston not only supported us before the investment but also helped in financial integration of our business after the transaction

Naman Jain
MD, Falcon Autotech Pvt. Ltd.
5/5

“

We had hired Caston to sail through our first ever equity fund raising round and also prepare us for the extensive financial due diligence. Caston’s team handled the assignment professionally and was prompt in responding to the investor’s queries from time to time. Caston not only supported us before the investment but also helped in financial integration of our business after the transaction

Naman Jain
MD, Falcon Autotech Pvt. Ltd.
5/5

“

We have personally known Aman and the Caston team for close to a decade now and right from the beginning they have been an invaluable part of all our business dealings. They gave us excellent advice on the sale of our business. It was a complicated deal involving multiple parties with competing interests, complex due diligence procedure, non-cash consideration, locked-box provisions and many other things which I was glad to have Caston’s help with. They made a real contribution to the sale process in relation to the negotiations on the SPA terms and their excellent project management skills. I would have no hesitation in recommending them to any other company thinking of using them to sell their organisation or for business expansion. They have also assisted us with follow-on sales and acquisitions and have proved to be very helpful and commercial on these occasions. I wish them all the best for their future.

O

Atul Gupta
Chairman,
Orange Education Private Limited
5/5

“

We have personally known Aman and the Caston team for close to a decade now and right from the beginning they have been an invaluable part of all our business dealings. They gave us excellent advice on the sale of our business. It was a complicated deal involving multiple parties with competing interests, complex due diligence procedure, non-cash consideration, locked-box provisions and many other things which I was glad to have Caston’s help with. They made a real contribution to the sale process in relation to the negotiations on the SPA terms and their excellent project management skills. I would have no hesitation in recommending them to any other company thinking of using them to sell their organisation or for business expansion. They have also assisted us with follow-on sales and acquisitions and have proved to be very helpful and commercial on these occasions. I wish them all the best for their future.

O

Atul Gupta
Chairman,
Orange Education Private Limited
5/5

“

Caston has helped us in underwriting multiple real estate transactions in the US to provide detailed and complex financial analysis. They have always been pro-active, professional and thorough in working with us and are a valuable member of our team.

U

Simon Turner,
Partner and Co-founder,
Urban Fox
5/5

“

Caston has helped us in underwriting multiple real estate transactions in the US to provide detailed and complex financial analysis. They have always been pro-active, professional and thorough in working with us and are a valuable member of our team.

U

Simon Turner,
Partner and Co-founder,
Urban Fox
5/5

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