Pre-shipment is also referred as "packing credit". It is working capital finance provided by commercial banks to the exporter prior to shipment of goods. Such finance is extended to an exporter for the purpose of procuring raw materials, processing, packing, transporting, warehousing of goods meant for exports. Exporters having firm export orders or confirmed L/C from a recognized Bank can avail the export credit facilities.The facility is available both in Indian Rupee and in major foreign currencies to Exporters.
Post-shipment Credit is offered to an exporter to finance export sales receivables after the date of shipment of goods till the date of realisation of export proceeds. Post shipment facility could be in form of Export bills negotiated under letter of credit, Export bills purchased under confirmed orders/export contracts or Advances against export bills sent for collection etc. The facility is available both in Indian Rupee and in major foreign currencies to Exporters.