FIEO apprised of shipment finance for business deals

Tribune News Service

Ludhiana, September 19

Federation of Indian Export Organisation (FIEO) Punjab Chapter in association with State Bank of India organised an “Interactive seminar on pre- shipment and post-shipment credit and finance for exports’’.

Vinay Kumar, Chief Manager (Credit and Non- Performing Assets), along with Rupinder Kaur, Manager, State Bank of India, joined the session as experts and interacted with participating delegates on how to avail credits and finance for exports business operations.

Vinay Kumar, during his presentation said: “Pre shipment credit is issued by a financial institution when the seller wants the payment of the goods before shipment. The main objectives behind pre-shipment credit or pre-export finance are to enable exporter to procure raw materials, carry out manufacturing process various other steps involved prior to the shipment. The post shipment credit means any loan or advance granted or any other credit provided by a bank to an exporter of goods and services from India from the date of extending credit after shipment of goods to the date of realisation of export proceeds. Both the pre and post credits are very important for overseas business operations”.

He further said that in today’s world, the credit and finance plays a very important role in business operations, especially, in case of exports. The availability of finances, both before and after shipment(s) are vital as the exporters faces various challenges during the process right from offering a competitive price to meeting the committed delivery timelines.

He also added that selling techniques are no longer confined to the parameters such as quality, price or delivery schedules of the products, but are also extended to payment terms.