Meaning of Export Finance

Meaning of Export Finance

Credit and finance are the life-blood of business whether domestic or international. The financial requirements of exporters can be of two types:

 

(a) Pre-shipment Finance: Pre-shipment finance refers to the credit extended to exporters prior to the shipment of goods for the execution of an export order.

 

(b) Post-shipment Finance: Post-shipment finance refers to the credit extended to exporters after the shipment of goods for working capital requirement.

 

These requirements of the exporters can be met through the following sources:

(a) Commercial banks authorised to deal in foreign currency.

(b) Export Import Bank of India (EXIM) Bank. While giving such assistance, financial institutions are mainly governed by the guidelines issued by:

(a) The Reserve Bank of India;

(b) The Trade and Exchange Control Regulations; and

(c) The International Conventions and Codes of the International Chamber of Commerce.

 

Triangular export

Triangular shipment

Types of Insurance Documents.

What happens if overseas buyer not paid export bills discounted.

What happens if proper tracking of goods not effected in export import business?

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

What happens, if Bank not received money from buyer after discounting of export bills?

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

How to make DA mode of payment safe

How to make delay in delivery of Shipment?

How to minimize import cargo clearance time? An open logic proposal to WTO

What happens, if cargo not cleared by importer

What happens, if HAWB number marks wrongly

What happens, once Bill of Entry for Imports files?

What is ‘Combined Bill of Lading’

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?

How to obtain Phyto sanitary certificate. What is phytosanitary certification

How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

What is ‘Late BL release charges’

What is ATA carnet and how ATA carnet works?

What is Bank Guarantee to customs in Import

What is Bond execution with customs in imports and exports

What is co-loading

 

What is Commercial enforcement hold for import cargo in US

What is consolidation of cargo What is LCL cargo less container load cargo

What is Crating in Exports and Imports

What is CT3 form. How to get CT3. Why CT3 required

What is customs bonded area in exports and imports

What is DDP terms in an export Import Business?

What is Dry Port

What is DTA in export import trade?

What is ECGC and how does ECGC protect exporters?

What is EPCG How EPCG works in Export Import trade?

What is Ex-factory terms in Imports and Exports

What is Express Release Bill of Lading

 

What is FIRC in export import business

What is first check assessment procedures in import customs clearance

What is FOB price in Exports and Imports and how it works

What is Fumigation in Export and Import

What is House BL



Comments


satheesh: We're writing this mail after seen your blog and expecting good suggestion from you, We're like startup proprietor company and company established 4+ years unfortunately we're not yet start any transaction till now due to payment terms issues with buyers and unable to get preshipment loan using ordinary LC, now we got one overseas export order to export milk product and buyer ready to open sblc hence to complete that order we want procurement funds and approached bank about preshipment packing credit loan, again they're asking past 3+ years ITR document and other financial documents, we dont have that due to we're not done any major transaction yet and bank denied preshipment packing credit loan again sblc, hence Could you please help us how we will get preshipment packing credit loan against buyer sblc without ITR and collateral, Please let us know if you have any clarifications.

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