In reference to the Import Finance, explain the difference between the term "Buyer's Credit" and "Supplier's Credit".

Buyer's Credit Supplier's Credit Buyers' credit refers to loans for payment of Imports into India arranged by the importer from overseas bank or financial institution. Suppliers' credit relates to the credit for imports into India extended by the overseas supplier. Imports should be as permissible under the extant Foreign Trade Policy of the Director General of Foreign Trade (DGFT). In this case too, imports should be permissible under the extant Foreign Trade Policy of the DGFT. For the overseas exporter, it is converted into a Cash transaction. The importer pays an agreed amount of down payment and the balance amounts are paid in instalments over a deferred period. Since the facility is provided by an overseas bank the interest rates may be slightly high. Since the facility is provided by the supplier itself, interest rates are comparatively low.