Export Finance
EXPORT FINANCE
FEDERATION OF INDIAN EXPORT ORGANISATIONS SOUTHERN REGION, CHENNAI
EXPORT FINANCE
“Export or perish” Our imports are more than exports. Hence there is a necessity to encourage exports. Govt. and RBI extend various concessions to boost exports.
EXPORT FINANCE
Some of the concessions include:
1.
2. 3.
4.
5. 6. 7. 8. 9. 10.
Cheap credit to exporters. Minimum of 12% of net credit should go to exports. Refinance to Banks on eligible portion of export credit outstanding. ECGC guarantee for export credits No margin requirements for advance against export receivables. Flexible approach to export lending and norms of lending. Time norms for disposal of application for export credit. Rejection with the concurrence of next higher authority Bifurcation of WC limits into loan and cc component after excluding export limits. Issue of Gold Card to exporters with good track record.
EXPORT FINANCE
Export credit can be broadly classified into Pre-shipment finance and post shipment finance. Pre-shipment finance refers to finance extended to purchase, processing or packing of goods meant for exports. Financial assistance extended after the shipment of exports falls within the scope of post shipment finance.
EXPORT FINANCE
PACKING CREDIT .As loan or cash credit against pledge or hypothecation. .Verification of Exporter-Importer Code No. issued by DGFT. .Party should not be in the RBI Caution list or ECGC Special Approval List. .Export is not to a listed country .Verify order/LC .OPL on the buyer .Up-to date knowledge of export policy .Commodity should not be in the negative list. .Commodity should have a good market .Terms of contract .No FEMA violation .Borrower should be credit worthy.
EXPORT FINANCE
Working capital may be defined as funds required to carry the required level of Current assets to enable the industry to carry on its operations at the expected levels uninterruptedly
EXPORT FINANCE
Gross working capital –
FEDERATION OF INDIAN EXPORT ORGANISATIONS SOUTHERN REGION, CHENNAI
EXPORT FINANCE
“Export or perish” Our imports are more than exports. Hence there is a necessity to encourage exports. Govt. and RBI extend various concessions to boost exports.
EXPORT FINANCE
Some of the concessions include:
1.
2. 3.
4.
5. 6. 7. 8. 9. 10.
Cheap credit to exporters. Minimum of 12% of net credit should go to exports. Refinance to Banks on eligible portion of export credit outstanding. ECGC guarantee for export credits No margin requirements for advance against export receivables. Flexible approach to export lending and norms of lending. Time norms for disposal of application for export credit. Rejection with the concurrence of next higher authority Bifurcation of WC limits into loan and cc component after excluding export limits. Issue of Gold Card to exporters with good track record.
EXPORT FINANCE
Export credit can be broadly classified into Pre-shipment finance and post shipment finance. Pre-shipment finance refers to finance extended to purchase, processing or packing of goods meant for exports. Financial assistance extended after the shipment of exports falls within the scope of post shipment finance.
EXPORT FINANCE
PACKING CREDIT .As loan or cash credit against pledge or hypothecation. .Verification of Exporter-Importer Code No. issued by DGFT. .Party should not be in the RBI Caution list or ECGC Special Approval List. .Export is not to a listed country .Verify order/LC .OPL on the buyer .Up-to date knowledge of export policy .Commodity should not be in the negative list. .Commodity should have a good market .Terms of contract .No FEMA violation .Borrower should be credit worthy.
EXPORT FINANCE
Working capital may be defined as funds required to carry the required level of Current assets to enable the industry to carry on its operations at the expected levels uninterruptedly
EXPORT FINANCE
Gross working capital –