Also referred to as Pre-export Finance, is issued when your supplier (the seller) wants the payment of the goods before shipment. The main objectives are to enable you (the exporter) to:
- Procure raw materials
- Carry out the manufacturing process
- Provide a secure warehouse for goods and raw materials
- Process and pack the goods
- Ship the goods to the buyers
- Meet other financial cost of the business
With pre-shipment financing your working capital requirements are provided for by Credit Bank provided there is a confirmed export order from an end buyer/off taker or against a Letter of Credit.
This type of financing provides your business (the exporter or seller) with finances against a shipment of goods or supplies made to the (your customer) importer or seller or any other designated agency.
With this facility, there is no need for you as an exporter to wait for the importer (your customer) to deposit the funds. This facility is usually provided against avalised bills by the importer’s bank or under accepted bills under the LC.
Benefits to your Business
- It improves liquidity of the business
- It eases cash flow position by providing greater financial liquidity & flexibility in administrating receivables
- It allows the exporter more liberal terms of payment to existing buyers thus competing with foreign suppliers
Credit Bank can offer both pre-shipment and post-shipment credit facilities in both Local as well as foreign currency.
With Credit Bank, a dedicated team ensures seamless follow-up at all stages of the import/export and the payment process giving you peace of mind.