1. Exporters need finance both at the pre – shipment stage &
at the post – shipment stage. The finance required to meet
various expenses before shipment of goods is called as pre
– shipment finance or “packing credit”. The finance which
is provided by banks after shipment of goods comes under
post – shipment finance

2. • Purpose
• Eligibility
• Documentary evidence / security
• Form / methods of pre shipment finance
• Amount of Packing Credit
• Period of Packing Credit
• Rate of Interest
• Loan Agreement
• Maintenance of Accounts
• Disbursement of Loan
• Monitoring the use of advance
• Repayment

3. • Purpose
• Eligibility
• Documentary evidence
• Forms of post shipment finance
• Amount of post shipment finance
• Rate of interest
• Loan Agreement
• Maintenance of Accounts
• Disbursement of Loan Account
• Monitoring the use of advance

4. • Application
• Processing of Application
• Sanctioning of loan
• Loan agreement
• Loan disbursement
• Maintenance of accounts
• Monitoring of accounts
• Repayment

5. • Fund based assistance
 At the pre – shipment stage
 At the post – shipment stage
• Non – fund based Assistance
 Bank guarantee
 Advisory & other Services

6. • Fund based assistance • Negotiation with overseas buyer
 Assistance to Indian Exporters • Obtaining indicative discounting
 Assistance to Indian commercial Quote
banks • Finalizing the contract
 Assistance to overseas buyers • Obtaining firm forfating quote
• Non - Fund based assistance • Obtaining avalized promissory
 Guarantees and Bonds notes / bills of exchange
 Advisory & other services • Submission of Notes
• Forwarding of Notes
• Collection of Amount

7. • Payment in Advance
• Open Account
• Payment against shipment or Consignment
• Documents against payments
• Documents against acceptance
• Letter of credit

8. • Size of the Order
• Competitors Credit terms
• Financial position of the exporter
• Exchange and import controls in the importing country
• Nature of product
• Creditworthiness of the buyer
• Economic situation in the importer’s country
• Relations

9. • Exporters request  To exporter :
• Reduction in Bad debts
• Importers request to his Banks • No blocking of funds
• Issue of LC • Clearance of import regulations
•
• Receipt of LC Free from liability
• Pre – shipment finance
• Shipment of Goods • Non – refusal by importer
• Scrutiny of Documents  To importer :
• No blocking of funds
• Realization of payment
• Delivery on time
• Documents to importer • Better relations
• Better terms of trade
• Sure of shipment of goods
• Overdraft facility