Outcome we drive: predictable cash flow for both sides, minimised risk for you. IndiaUnbox engineers payment structures—advance, balance, LCs, guarantees—so your suppliers get confidence and you keep leverage on price, delivery, and quality.

What we structure (and why it’s safer)

• Right-sized advance payments
  – Keep advances lean (often 0–20%) and tie them to milestones (tooling, pre-production) with Advance Payment Guarantees (APG) under URDG 758, so your funds are safeguarded.
  – Align advances with RBI’s import rules on evidence of import (e.g., when advances are split across milestones, the “date of last remittance” governs documentation)—avoids banking frictions later.
  
• Balanced payouts on shipment/delivery
  – Use Documents Against Payment/Acceptance under URC 522 (for low–medium risk lanes) or LC at sight/usance (for higher risk or larger values). We pick the instrument that matches supplier credit strength and your risk appetite.
  
• Letters of Credit that work for you
  – We simplify LCs to sight or 60–120 day usance, define clean document sets, and—where needed—arrange bank confirmation only when the supplier’s bank/country risk merits it.
  – We lock in charges allocation per UCP 600 Art. 37 (e.g., charges in issuing bank’s country on applicant; outside on beneficiary, unless agreed otherwise) and make sure you’re not liable for hidden fees if a bank can’t collect from the beneficiary.
  
• Funding & liquidity options for suppliers (without raising your price)
  – Where your Indian supplier needs faster cash, we enable discounting (LC/usance discount, collections discount) or guide them to TReDS. India now mandates TReDS onboarding for large buyers (turnover ≥ ₹250 crore), expanding liquidity in the ecosystem. That context helps us negotiate lighter advances.
  
• Compliance anchors built-in
  – We stay inside RBI Master Directions for imports/exports and trade credit (buyers’/suppliers’ credit), so banks clear your deals without last-minute queries
  – For India-based counterparties, we factor the MSME payment regime—45-day cap with interest exposure and Section 43B(h) tax disallowance—to craft win-win terms that are compliant and auditable.
  

Typical structures we negotiate

• “Lean-advance + sight LC”
  10% APG-backed advance → balance at sight LC on onboard BL + inspection cert → bank charges split by UCP 600 default unless commercially re-assigned. Good for new suppliers who need modest cash but you need tight control.
  
• “Milestone advance + 90–120 day usance LC (with supplier discounting)”
  15% on tooling (APG-backed) → 85% under LC at 90/120 days; supplier optionally discounts at their bank. Keeps your working capital light, supplier gets liquidity at bank rates, not embedded in price.
  
• “No advance + D/P (URC 522) with performance guarantee”
  For repeat buys/low risk: D/P against clean docs, backed by performance guarantee (URDG 758). Reduces your pre-shipment exposure while reassuring the supplier on payment certainty.
  

What we lock into your contract & LC

• Exact instrument and tenor (sight vs 60/90/120 days) aligned to RBI trade credit norms.
  
• Clean document set (invoice, packing list, BL/AWB, CoO, inspection/QA)—consistent with UCP 600 to avoid discrepancies.
  
• Charges & confirmation: explicit who-pays-what per UCP 600 Art. 37 (and local market practice), so banks don’t deduct unexpected fees.
  
• Guarantees: templates subject to URDG 758 for APG/Performance BG—clear expiry, claim windows, and place of presentation.
  
• Acceptance & timelines for advance documentation under RBI import rules—no post-facto bank escalations.
  

Why this wins negotiations

Suppliers value speed and certainty. By replacing “more advance, please” with bankable instruments (APG/LC/URC collections) and clear charges/tenors, we keep their cash flowing without bloating your unit price. The new TReDS push and India’s MSME payment discipline further strengthen our case for lower advances and leaner balances, while staying fully compliant with RBI and ICC rules.

Your deliverables

• Payment Terms Matrix with 2–3 executable options (advance %, instrument, tenor, charges split, guarantees).
  
• Bankable drafts: LC text, APG/BG wording (URDG 758), and collections instructions (URC 522).
  
• Compliance checklist mapped to RBI Master Directions; UCP/URC/URDG references inside each clause for frictionless bank handling.
  

Bottom line: We don’t just ask for better terms—we build them with the exact bank rules and India regulations your suppliers and their banks already trust.