Pre-shipment finance
Funding to cover your production and other costs
Pre-shipment finance provides you with the working capital you need to source and produce goods to be sold. It can be used to cover your procurement, manufacturing, packing, transportation and shipping costs.
Features
- Security options – lending can be provided against a Letter of Credit arranged by the buyer with you as beneficiary or an acceptable purchase order raised by the buyer
- Tailored rates – dependent on the transaction and counterparty risk
- Approved credit facility limit – must be in place to cover the performance and payment risks of the counterparties
- Repayment – made from the Letter of Credit proceeds or on payment of the invoice
Benefits
- Improves cash flow and working capital – by letting you finance your purchases before you ship and invoice your customer
- Usability – viable where alternative financing options are limited
- Cost efficiency – could be a more competitive way of financing compared with your existing arrangements
- Broad range of applications – available for commodities and many other goods
