Export Finance

Export Finance

Export finance refers to financial assistance extended by banks and other financial institutions to businesses for the shipping of products outside a country or region. Export financing enables MSMEs to expand its reach to a global audience.


An exporter should first gain understanding of some documents commonly required by export finance institutions. These documents are mandatory requirements for most types of export finance assistance.


Export finance assistance is extended at various stages of exports. Loans or advances are granted by financial institutions to exporters for financing the purchase, processing, manufacturing or packing of goods prior to shipment which is known as pre-shipment credit .


Loans or advances are granted by financial institutions to exporters from the date of extending credit after shipment of goods to the date of realization of export proceeds which is known as post shipment credit .


Banks and financial institutions extends factoring services to exporters where-in it buys the accounts receivable of the exporter at a discount in exchange for immediate money.

 

To know the current exchange rates between various international currencies, please visit :- www.oanda.com , www.ex.com .

 

To know more about export related terms please visit: - http://keywen.com/en/EXPORT

 

To find out export financing bank schemes – Click here