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    Export Import: Post Shipment Finance

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    Dharm Yadav
    Post-shipment finance refers to short-term credit provided by commercial banks to exporters after goods have been shipped to help cover costs and provide working capital. It allows exporters to pay expenses like commissions, duties, shipping and marketing. The finance comes in various forms like negotiating export bills, purchasing export bills, and advances against shipped goods, undrawn balances or retention money. Exporters must submit documents like invoices, bills of lading, and certificates to apply for and receive post-shipment financing.

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    Export Import: Post Shipment Finance

    Uploaded by

    Dharm Yadav
    20 views10 pages
    Post-shipment finance refers to short-term credit provided by commercial banks to exporters after goods have been shipped to help cover costs and provide working capital. It allows exporters to pay expenses like commissions, duties, shipping and marketing. The finance comes in various forms like negotiating export bills, purchasing export bills, and advances against shipped goods, undrawn balances or retention money. Exporters must submit documents like invoices, bills of lading, and certificates to apply for and receive post-shipment financing.

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    postshipment finance-final

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    Post-shipment finance refers to short-term credit provided by commercial banks to exporters after goods have been shipped to help cover costs and provide working capital. It allows exporters to pay expenses like commissions, duties, shipping and marketing. The finance comes in various forms like negotiating export bills, purchasing export bills, and advances against shipped goods, undrawn balances or retention money. Exporters must submit documents like invoices, bills of lading, and certificates to apply for and receive post-shipment financing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    20 views10 pages

    Export Import: Post Shipment Finance

    Uploaded by

    Dharm Yadav
    Post-shipment finance refers to short-term credit provided by commercial banks to exporters after goods have been shipped to help cover costs and provide working capital. It allows exporters to pay expenses like commissions, duties, shipping and marketing. The finance comes in various forms like negotiating export bills, purchasing export bills, and advances against shipped goods, undrawn balances or retention money. Exporters must submit documents like invoices, bills of lading, and certificates to apply for and receive post-shipment financing.

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    of 10

    Export Import

    Post Shipment Finance

    Group A4
    Index

    1. Definition.
    2. Importance.
    3. Features.
    4. Procedure.
    5. Documents.
    6. Types/Methods.
    Definition

     Post-shipment finance (short-term) refers to credit


    extended to the exporters after the shipment of goods for
    meeting working capital requirements.
     Post-shipment credit (long term) is given to exporters on
    deferred payments terms for the period of over one year.
     Granted by commercial banks after shipment of goods .
    Importance
    • Pay commission & brokerage.
    • Pay for port authorities.
    • Pay insurance charges & ECGC premium.
    • Pay custom duties, port charges & export duty, marine
    freight & other shipping charges.
     Undertake promotion activities & market survey abroad.
     Pay for participation in international trade fairs &
    exhibitions.
     Meet Expenses for after sales service.
    Features
     Eligibility.
     Purpose.
     Documentary evidence.
     Forms of Finance.
     Amount of Finance.
     Period of Finance.
     Rate of Interest.
     Monitoring the use of advance.
     Repayment of loan.
    Procedure

     Submission of Application.

     Processing of the Application.

     Sanctioning of Loan.

     Loan Agreement & Disbursement of the Loan.

     Maintenance of Accounts.

     Monitoring the Use of Loan.

     Repayment of Loan.
    Important Documents required
    Letter of credit.

    Invoice.

    Bill of lading.

    Other essential documents.


     Certificate of origin.

     Packing list.

     Dock/Warehouse Receipt

     Insurance Certificate
    Types of Post shipment Finance

    Export Bills negotiated under L/C.

    Purchase/Discounting of Export Bills.

    Advance against Bills sent for collection .

    Advance against Goods sent on consignment basis.


    Types (contd.)

    Advance against Undrawn Balances.

    Advance against Retention Money.

    Advance against deemed exports.

    Advances against Incentives.

    Advance against Deferred Payments.


    Done By-
    Meghna Dangayach

    Bhumi Harwani

    Ketki Patil

    Krutika Rathod

    Priyanka Shah

    Shweta Vyawahare

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