Generally there are more strict regulations in international trade than domestic trade. The communication gap between parties, custom difference, risks of non-compliance, transaction exposure and financing are a burden on importers and exporters. For them to stay hassle free Export and Import Finance have come into picture.
An exporter avails financial assistance for the funds to be available at the required time and for affordability of cost of fund.
Export finance can be broadly classified into:
Pre Shipment Finance
Post Shipment Finance
Pre shipment finance is loan provided by any financial institution if the seller requires the payment of the goods before shipment. Exporters use pre shipment finance as that enables exporters to procure raw materials and go on with production hassle free.
Post shipment finance is issued by financial institution to an exporter against the shipment that is already been made. This is done from the date of extending the credit after the shipment of goods to the date of the realization exporter proceeds. Post shipment finance is for exporters who have sales receivables after the date of shipment of goods to the date of realization of export proceeds.
Myforexeye export finance service offers helps exporters grow their business month on month. With our factoring, local currency bill discounting, and foreign currency bill discounting solutions, SMEs go hassle free and save costs upfront at the click of a button and at tap on Myforexeye mobile application.
Imports are a burden on firm’s cash flow, as the complications, non real time rates, import tariffs, and delays mean huge costs. In India especially there is more of Imports than exports. One of the major problems in importing is the lack of trust. This is where Import finance came into picture. This is a type of working capital finance for assisting imports from initial order to end customer payment. The import finance provider act as an intermediary between importer and supplier, by financing the transaction.
Manage your payment cycle for imports effectively with Import finance solutions. We offer suppliers credit and stand by letter of credit backed by buyer’s credit to our clients at the tap on Myforexeye Application.
Read more about Export Exchange Rate