As the indent houses are specialized houses in import trade, their services are very useful to the importer. Though importers are free to place orders directly. Most of them prefer to make use of the services of the indent houses. Indent houses provide many services to importers some of the important advantages of indent houses are given below:
(a) Many importers in India are not conversant with the complexities of foreign markets. Moreover, the policy of the Government of India is to issue import licenses to actual uses. In this process, a large number of small manufacturers get import licences who have neither any knowledge of foreign suppliers not are familiar with the procedure of import. They cannot import goods independently without the help of indent houses because of their lack of experience.
(b) Indent house collect orders from a large number of small importers and place them with foreign manufactures. Thus the benefit of buying and transportation on a large scale is made available to small importers.
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(c) The indent houses, mostly, have their agents in foreign markets. Though these agents, they collect latest information regarding the foreign markets, the developments and the new articles placed on the market which they make available to the importers.
(d) Many indent houses in India also help in exploring new markets for the Indian goods.
(e) As the foreign agents of the indent houses are present on the spot, they can inspect the quality of goods shipped and prompt shipment of goods is also made possible by them.
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(f) Many importers find it very difficult to make necessary arrangements for direct credit with the foreign exchange banks. The specialized import house enjoy a better credit in the foreign markets. They service more favorable terms of trade including credit for the importers.
(g) Claims and complaints, if any, owing to breakage, inferior quality, defective packing etc. become more effective through indent houses which have their agents in the foreign markets.
(h) The exporters also find it advantageous to appoint indent houses as their agents in the importing country as they are very much conversant with the local requirements and customs of the trade. Thus indent houses serve as an integral link between the Indian importer and a foreign exporter.