This facility is offered to an exporter by way of packing credit to enable him to finance purchase or import of raw materials, processing and packing of the goods meant for exports.
Post-shipment Credit is offered to an exporter to finance export sales receivables after the date of shipment of goods till the date of realization of export proceeds.
This offering is in the form of a loan provided to the exporter to bridge the working capital gap that exists before the export proceeds are realized. Once the export proceeds are realized the loan is liquidated.