For the subject of . . . . . .  Export Documentation and Procedures mba - 853 By . . . . . . . . . . . . . . . . . . . . ....
EXPORT FINANCE
INTRODUTION <ul><li>Finance and credit are available to help not only export production but also to sell to overseas custo...
What is Export Finance ? <ul><li>Financial Assistance is extended by the banks to the exporters at Pre-shipment and Post-s...
Key Points in Export Financing   <ul><li>There are a lot of benefits of exporting and lot of financial risk involved as we...
 
EXPORT CREDITS <ul><li>For Indian Companies Executing Contracts Overseas </li></ul><ul><li>Pre-shipment Credit </li></ul><...
<ul><li>For Commercial Banks </li></ul><ul><li>Export Bills Rediscounting </li></ul><ul><li>Refinance of Supplier's Credit...
FINANCE FOR  EXPORT ORIENTED UNITS <ul><li>Term Finance   (For Exporting Companies) </li></ul><ul><li>Project Finance  </l...
<ul><li>Working Capital Finance </li></ul><ul><li>(For Exporting Companies) </li></ul><ul><li>Funded </li></ul><ul><ul><ul...
<ul><li>Term Finance   ( For Non- Exporting Companies ) </li></ul><ul><li>Import of Equipment  </li></ul><ul><li>Working C...
 
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Role of exim bank in export financing

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Role of exim bank in export financing

  1. 1. For the subject of . . . . . . Export Documentation and Procedures mba - 853 By . . . . . . . . . . . . . . . . . . . . . . . . . . Raman Sethi (08) Harshul Nagpal (50) Institute of Management Studies, Kurukshetra University, Kurukshetra. A Presentation on ‘ Role Of EXIM Bank in Export Financing ’
  2. 2. EXPORT FINANCE
  3. 3. INTRODUTION <ul><li>Finance and credit are available to help not only export production but also to sell to overseas customers on credit. </li></ul><ul><li>There are different schemes like: </li></ul><ul><ul><li>Pre-shipment or packing credit, </li></ul></ul><ul><ul><li>Post-shipment Credit and/or </li></ul></ul><ul><ul><li>Finance for Deferred Payment Exports . </li></ul></ul><ul><li>Both pre-shipment and post-shipment credits are also available in foreign currency. </li></ul>
  4. 4. What is Export Finance ? <ul><li>Financial Assistance is extended by the banks to the exporters at Pre-shipment and Post-shipment stages. </li></ul><ul><li>Pre-shipment finance is provided for working capital for the purchase of raw material, processing, packaging, transportation, warehousing etc. of the goods meant for export. </li></ul><ul><li>Post-shipment finance is generally provided in order to bridge the gap between shipment of goods and the realization of proceeds. </li></ul>
  5. 5. Key Points in Export Financing <ul><li>There are a lot of benefits of exporting and lot of financial risk involved as well. It is important to fully understand the risks and the government regulations before selling overseas. </li></ul><ul><li>Export financing is loans made for the shipping of products outside a country. </li></ul><ul><li>Utilizing a factoring house overseas is one of the creative methods for export financing. </li></ul><ul><li>Make sure your business has a plan that is clear for the potential lenders and investors about the direction your company is going. </li></ul><ul><li>Always know where your business can gain access to sources of capital that is both fast, easy, and free. </li></ul>
  6. 7. EXPORT CREDITS <ul><li>For Indian Companies Executing Contracts Overseas </li></ul><ul><li>Pre-shipment Credit </li></ul><ul><li>Supplier's Credit </li></ul><ul><li>For Project Exporters </li></ul><ul><li>For Exporters of Consultancy and Technological Services </li></ul><ul><li>Guarantee Facilities </li></ul><ul><li>Deferred Payment Exports </li></ul><ul><li>Term Loans for Export Production </li></ul><ul><li>Overseas Investment Finance </li></ul><ul><li>Finance for Export Marketing </li></ul>
  7. 8. <ul><li>For Commercial Banks </li></ul><ul><li>Export Bills Rediscounting </li></ul><ul><li>Refinance of Supplier's Credit </li></ul><ul><li>Guaranteeing of Obligations </li></ul><ul><li>For Overseas Entities </li></ul><ul><li>Buyer's Credit </li></ul><ul><li>Eligible Goods </li></ul><ul><li>Lines of Credit </li></ul><ul><li>Relending Facility to Banks Overseas </li></ul>
  8. 9. FINANCE FOR EXPORT ORIENTED UNITS <ul><li>Term Finance (For Exporting Companies) </li></ul><ul><li>Project Finance </li></ul><ul><li>Equipment Finance </li></ul><ul><li>Import of Technology & Related Services </li></ul><ul><li>Domestic Acquisitions of businesses/companies/brands </li></ul><ul><li>Export Product Development/ Research & Development </li></ul><ul><li>General Corporate Finance </li></ul>
  9. 10. <ul><li>Working Capital Finance </li></ul><ul><li>(For Exporting Companies) </li></ul><ul><li>Funded </li></ul><ul><ul><ul><li>Working Capital Term Loans (< 2 years) </li></ul></ul></ul><ul><ul><ul><li>Long Term Working Capital (up to 5 years) </li></ul></ul></ul><ul><ul><ul><li>Export Bills Discounting </li></ul></ul></ul><ul><ul><ul><li>Export Packing Credit </li></ul></ul></ul><ul><ul><ul><li>Cash Flow financing </li></ul></ul></ul><ul><li>Non-Funded </li></ul><ul><ul><ul><li>Letter of Credit Limits </li></ul></ul></ul><ul><ul><ul><li>Guarantee Limits </li></ul></ul></ul>
  10. 11. <ul><li>Term Finance ( For Non- Exporting Companies ) </li></ul><ul><li>Import of Equipment </li></ul><ul><li>Working Capital Finance ( For Non- Exporting Companies ) </li></ul><ul><li>Bulk Import of Raw Material </li></ul><ul><li>Export Finance </li></ul><ul><li>Pre-shipment Credit </li></ul><ul><li>Post Shipment Credit </li></ul><ul><li>Buyers' Credit </li></ul><ul><li>Suppliers' Credit (including deferred payment credit) </li></ul><ul><li>Bills Discounting </li></ul><ul><li>Warehousing Finance </li></ul>

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