Post shipment finance

Post Shipment Finance is a kind of loan provided by a financial institution to an exporter or seller against a shipment that has already been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds. Exporters dont wait for the importer to deposit the funds.

The post shipment finance can be classified as :

a) Export Bills purchased/discounted.

b) Export Bills negotiated

c) Advance against export bills sent on collection basis.

d) Advance against export on consignment basis

e) Advance against undrawn balance on exports

f) Advance against claims of Duty Drawback.