Shipment finance
The Bank offers shipping finance to facilitate customers engaged in export and import trade. It can be post-shipment or pre-shipment finance. Pre-shipment Finance – short-term loan facility offered by the Bank to a customer to enable purchase of in- puts for the production process of goods which are for on-ward sale/ export and Post-shipment Finance on the other hand is a short-term loan facility offered by the Bank to an importer for the purpose of settling the Bills of Exchange that have matured in a situation when the importer has not mobilized adequate financial resources to settle the same.
Product Features
Denominated in local or foreign currency
Post/Pre-shipment finance maximum tenor is 180 days
The facility is self-liquidating
Benefits
Provides additional working capital with flexible security requirements
Enables taking on large orders
Can be used on a revolving basis
Sales proceeds realized before making payment
Extended credit period with post shipment loans
Approved alongside other credit products like letters of credit and structure finance.
Requirements
Loan application form
Financing for pre-shipment is backed by confirmed order or export LC
Security in the form of collateral which could be fixed assets or stocks under collateral management or a combination of both
Other requirements are similar to Commercial/Corporate loans
