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Like every other business even in export business, finance plays a very important role. Some common payment terms are cash in advance, open account, consignment sales, document against payment, …

Like every other business even in export business, finance plays a very important role. Some common payment terms are cash in advance, open account, consignment sales, document against payment, documents on acceptance, documentary letter of credit.
The Export Import Bank was set up to provide finance facilities and promote foreign trade.

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  • 1. Chapter 13Export Finance International Marketing Chapter-13 Export Finance
  • 2. Objectives What are the common payment terms What is the role of institutional finance for export What are the objectives and functions of Exim Banks International Marketing Chapter-13 Export Finance
  • 3. Introduction The international market is generally very competitive and sensitive and the credit facilities made available to the buyers are one of the important determinants of export business. The extent to which credit must be extended to the importer depends on the sale terms. International Marketing Chapter-13 Export Finance
  • 4. Payment Terms Cash in advance Open account Consignment sale Documents against payment Documents on acceptance Documentary letter of credit International Marketing Chapter-13 Export Finance
  • 5. Institutional finance for export Even if the exporter gets payment at the time of the shipment of goods, he has to arrange for finance to meet the expenses involved until the time of shipment. These include expenditure on the purchase of materials and components, processing, packaging, packing, marking, transaction, warehousing, etc. International Marketing Chapter-13 Export Finance
  • 6. Pre-shipment CreditPre-shipment finance also known as packingcredit, refers to the credit extended to theexporter prior to the shipment of goods.Pre-shipment credit enables him to meet hisworking capital requirements for the purchaseof raw materials and components, processing,packing, transportation, warehousing, etc.Packing credit is short-term finance.It is also advanced International Marketing against export incentives. Chapter-13 Export Finance
  • 7. Exim Bank The Export-Import Bank of India, set-up in 1982. for the purpose of financing, facilitating and promoting foreign trade of India, is the principal financial institution in the country for co-coordinating working of institutions engaged in financing exports and imports International Marketing Chapter-13 Export Finance
  • 8. Objectives And Functions OfExim Bank1. Grant of loans and advances in India solely or jointly with commercial banks to persons exporting or intending to export.2. Grant of lines of credit to Governments, financial institutions and other suitable organizations in foreign countries to enable.3. Handling transactions where a mix of government credit and commercial credit for exports is involved. International Marketing Chapter-13 Export Finance
  • 9. 4. Purchasing, discounting and negotiating export bills.5. Selling or discounting export bills in international markets.6. Discounting of export bills negotiated7. Providing refinance facilities8. Granting loans and advances9. Issuing confirmation/endorsing letters of credit on behalf of exporters in India International Marketing Chapter-13 Export Finance
  • 10. 10. Buying and selling foreign exchange11. Undertaking and financing research12. Providing technical, administrative and financial assistance to any exporter in India. International Marketing Chapter-13 Export Finance
  • 11. Summary Finance facilities play an important role in the export business. Some common payment terms arei. Cash in advanceii. Open accountiii. Consignment salesiv. Document against paymentv. Documents on acceptancevi. Documentary letter of credit The Export-Import Bank of India was set up to provide finance facilities and to promote foreign trade. International Marketing Chapter-13 Export Finance