dxlogo

Blogs

KEEP IN TOUCH
How Does Packing Credit Work In The Export Business?

How Does Packing Credit Work In The Export Business?

Packaging credit is nothing but a pre-shipment loan given to exporters at a low interest rate in order to boost exports. It is one of the most commonly used trade finance tools by international exporters. Import-export training classes will help you better understanding international business and its different terms.    Obtaining packing credit is a government policy to encourage exporters to earn foreign currency, which strengthens the financial status of a country. It is given by authorized banks by the Reserve Bank of India.  Packaging credit is pre-shipment financing offered by banks for acquiring raw materials and arranging goods ready for shipment. Banks provide packing credits along with raw materials or finished goods in some cases.  It is a separate form of credit given to exporters unrelated to any other loan granted by the bank.  When the overseas buyer sends the shipment amount, the packing credit amount will be adjusted by the bank to close the loan for the export order.  Exporters have to approach their bank with their export order to obtain packing credit. Bank officials visit the exporter’s factory and assess the value of the goods with the export order.  What are your thoughts about this article about packing credit to exporters? This information is a part of our export-import online classes.    

For More Knowledge Read Our Article On-

Different Export Finance That Helps In Business GrowthWhat is Drop Shipping And Why Is It Important? An explanation of the House Bill of Lading A Quick Guide to Different Payment Methods in International BusinessA comparison of BAF and CAF Do Airway Bills Serve As Documents Of Title? Difference Between High Sea Sale and ImportsWhat does a Line Number in IGM mean?   What is IHC- Inland Haulage Charges? FIRC In Export And Import Business Documentation of High Sea Sales What is Triangular Shipment?What Is E-Commerce Under GST?  What Is the Port Of Discharge And Place Of DeliveryDifferent Types of Export Containers What is FCL in Export Import? Steps to Become Successful in Trade for Start-ups What is a Mother Vessel and Feeder Vessel  What is co-loading? What is ICD? 

What is SWOT Analysis and Why it is Important for Business?

Role of Indian Embassy in Export ImportWhat is Registration Cum Membership Certificate? What is DGFT and Its Role? What is a Bill of Exchange? What is a Letter of Credit? 

What is a Bill of Lading? 

What is High Sea Sales?  What Does DGFT Grant to Indian Importers & Exporters?

Watch Our YouTube Videos On- https://www.youtube.com/watch?v=d1BnIZqbTow https://www.youtube.com/watch?v=ZdkoaoYszxIhttps://www.youtube.com/watch?v=47K1YcfBmFMhttps://www.youtube.com/watch?v=iZEYAkiUZwkhttps://www.youtube.com/watch?v=x013EKVaxlw

About Author

Sed ut perspiciatis unde omnis iste natus err or sit voluptatem accusantium dolore mque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt

Direct EXIM Trade

About KTD Ambica Group

usp1
33+ Years Experience
usp2
1000+ crore Cargo handled
usp3
15000+ Clients Consulted
usp4
30+ Countries network
modalfooter
kv