Meaning of Post Shipment Finance

Meaning of Post Shipment Finance

Post-shipment finance (short-term) refers to the credit extended to the exporters after the shipment of goods for meeting working capital requirement. It is given by the commercial banks after the shipment of goods and submission of commercial documents to them for negotiation or collection.

Post-shipment credit (medium and long-term) is given for exports on deterred payment terms for the period of over one year.

 


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