Post shipment finance to exporters without packing credit facility
Banks in India offer various credit facilities to exporters both at pre-shipment stage (Packing Credit) and Post-shipment stage viz. Purchase of export bills, Discount of Export Bills, Negotiation of Export bills, Advance against Undrawn Balances on Export Bills, Advance against Retention Money, Advance against Duty Draw Back, Advance against Deemed Exports, Advance against the export of Goods for…
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Document procedures for exports and imports in India
As per DGFT Notification dated March 12, 2015, Indian exporters and importers require the following three mandatory documents in foreign trade. MANDATORY DOCUMENTS IN INDIA FOR EXPORT & IMPORT Sr.No Export Import 1 Bill of Lading/ Airway Bill Bill of Lading/ Airway Bill 2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List 3…
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Eligibility norms for bank finance to exporters
Banks extend export credits to exporters of goods and services, where the loans are released for procuring, Packing processing (where necessary), manufacturing and finally for packing of goods. The credit facility is also available to service providers for the working capital requirement like the purchase of consumables, wages, and supplies etc. for the rendering of…
Read article What are the types of post-shipment finance available from banks?
(This post provides details about Purchase of export bills, Discount of Export Bills, Negotiation of Export bills, Advance against Undrawn Balances on Export Bills, Advance against Retention Money, Advance against Duty Draw Back, Advance against Deemed Exports, Advance against export of Goods for Exhibition and Sale) Post-shipment Export credit facility in banks means finance made to an exporter…
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Understanding ECGC Guarantees available to the exporters
ECGC is designed to guard exporters from the consequences of the payment risks, both political and commercial, which enables the exporters to expand their overseas business without fear of loss. ECGC covers losses that may be incurred in extending loans by the banks and other financial intermediaries to exporters. The major forms of Guarantees offered…
What is factoring?
Factoring is commonly identified as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Factoring service is a service that covers (i).Collection of bills, (ii).discounting of bills (iii).maintenance of accounts books in domestic and international trade. Factoring enables companies to sell their outstanding book debts for cash. They sell invoiced receivables at a discount…
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