For the subject of . . . . . . Export Documentation and Procedures mba - 853

By . . . . . . . . . . . . . . . . . . . . . . . . . . Raman Sethi (08) Harshul Nagpal (50)

Institute of Management Studies,Kurukshetra University, Kurukshetra.A Presentation on

Role Of EXIM Bank in Export Financing

EXPORTFINANCE

INTRODUTIONFinance and credit are available to help not only export production but also to sell to overseas customers on credit.

There are different schemes like:Pre-shipment or packing credit,Post-shipment Credit and/orFinance for Deferred Payment Exports.

Both pre-shipment and post-shipment credits are also available in foreign currency.

What is Export Finance ?Financial Assistance is extended by the banks to the exporters at Pre-shipment and Post-shipment stages.

Pre-shipment finance is provided for working capital for the purchase of raw material, processing, packaging, transportation, warehousing etc. of the goods meant for export.

Post-shipment finance is generally provided in order to bridge the gap between shipment of goods and the realization of proceeds.

Key Points in Export Financing There are a lot of benefits of exporting and lot of financial risk involved as well. It is important to fully understand the risks and the government regulations before selling overseas.

Export financing is loans made for the shipping of products outside a country.

Utilizing a factoring house overseas is one of the creative methods for export financing.

Make sure your business has a plan that is clear for the potential lenders and investors about the direction your company is going.

Always know where your business can gain access to sources of capital that is both fast, easy, and free.

EXPORT CREDITSFor Indian Companies Executing Contracts OverseasPre-shipment CreditSupplier's CreditFor Project ExportersFor Exporters of Consultancy and Technological ServicesGuarantee FacilitiesDeferred Payment ExportsTerm Loans for Export ProductionOverseas Investment FinanceFinance for Export Marketing

For Commercial BanksExport Bills RediscountingRefinance of Supplier's CreditGuaranteeing of Obligations

For Overseas EntitiesBuyer's CreditEligible GoodsLines of CreditRelending Facility to Banks Overseas

FINANCE FOR EXPORT ORIENTED UNITSTerm Finance (For Exporting Companies)

Project Finance Equipment Finance Import of Technology & Related Services Domestic Acquisitions of businesses/companies/brands Export Product Development/ Research & Development General Corporate Finance

Working Capital Finance (For Exporting Companies)

FundedWorking Capital Term Loans (< 2 years) Long Term Working Capital (up to 5 years)Export Bills Discounting Export Packing Credit Cash Flow financing Non-FundedLetter of Credit Limits Guarantee Limits

Term Finance (For Non- Exporting Companies)Import of Equipment

Working Capital Finance (For Non- Exporting Companies)Bulk Import of Raw Material

Export FinancePre-shipment Credit Post Shipment Credit Buyers' Credit Suppliers' Credit (including deferred payment credit)Bills Discounting Warehousing Finance

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