A Presentation on

Role Of EXIM Bank in Export Financing

For the subject of . . . . . . Export Documentation and Procedures mba - 853 By . . . . . . . . . . . . . . . . . . . . . . . . . . Raman Sethi (08) Harshul Nagpal (50)

Institute of Management Studies, Kurukshetra University, Kurukshetra.

EXPORT FINANCE

INTRODUTION
Finance 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/or Finance 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. outside a country.

Export financing is loans made for the shipping of products

Utilizing a factoring house overseas is one of

methods for export financing.

the creative

Make sure your business has a plan that is clear for the potential

lenders and investors about the direction your company is going.

capital that is both fast, easy, and free.

Always know where your business can gain access to sources of

Role of EXIM Bank in Export Financing

Export Credits

Finance for EOUs

EXPORT CREDITS
1. For Indian Companies Executing Contracts

Overseas

Pre-shipment Credit Supplier's Credit For Project Exporters For Exporters of Consultancy and Technological Services Guarantee Facilities Deferred Payment Exports Term Loans for Export Production Overseas Investment Finance Finance for Export Marketing

2. For Commercial Banks Export Bills Rediscounting Refinance of Supplier's Credit Guaranteeing of Obligations

3. For Overseas Entities Buyer's Credit Eligible Goods Lines of Credit Relending Facility to Banks Overseas

FINANCE FOR EXPORT ORIENTED UNITS

1. Term 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

2. Working Capital Finance (For Exporting Companies)

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

3. Term Finance (For Non- Exporting Companies) Import of Equipment 4. Working Capital Finance (For Non- Exporting Companies) Bulk Import of Raw Material

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