Pre export Finance

Pre export Finance

Pre-export financing usually takes place when a finance provider advances certain amount of funds to the borrower totally based on proven orders from buyers. As a trader you need to raise funding for producing and supplying the commodities.
In a number of cases the supplier has to make necessary arrangements for the importer for sending payment directly to the finance provider or lender. The lender further sends this amount to the seller after deducting charges along with interest associated with the loan which is termed as prepayment finance.

One of the crucial reasons for adopting pre export financing is that the borrower will get access to sufficient liquidity for maximising the company’s production.