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1.Finance is the most important element in every business.
2. Export is not an exception to this requirement.
3. Out of many sources, bank finance is one of the most common sources of finance.
4. Bank provides finance under different methods and under different headings.
5. Export packing credit is one of the financing products.
6. Packing credit refers to loan or an advance given by the bank to an exporter.
7. The purpose of export packing credit is to make the funds available for:
8. The period for which packing credit is granted depends on case to case basis.
9.In this case, the bank will recover higher rate of interest.
10. If the pre-shipment advances are not liquidated out of export proceeds within particular period from the date of advance, then the advance will cease to qualify for concessional rate of interest to the exporter.
11. The exporter is required to provide confirmed order backed by Letter of Credit opened in his favour by an overseas buyer.
12. Export packing credit is a financing option in India with low interest rates that supports both pre-shipment and post-shipment stages for you to optimise your export activities.
13. Export packing credit helps exporter for working capital.
14. The exporter is required to make the application along with necessary documents like:
15. The amount of packing credit is generally certain percentage of export order.
16. The list of documents required along with the application may differ from bank to bank, to some extent.
17. Export packing credit will improve cash flow, optimise cash flow management, cover manufacturing related expenses and support exporter’s supply chain.
18. Many exporters are able to handle large orders due to the facility of packing credit.
19. When the bank receives any amount from overseas, the bank intimates the party.
20. Post-shipment finance is provided after the shipment of goods to allow your business to sustain operations and manage expenses as you wait for your shipped goods to realise the proceeds.
21. The interest rates are generally lower than other available loans.
22. The actual rate is based on:
Exporter is advised to contact your banker and understand specific requirements of your bank for the purpose of availing packing credit
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