After obtaining a firm order from the buyer one can approach the Bank where he has current account and apply for a loan for export and after scrutinizing his documents the Bank authorities may release loan.
Exim Bank of India, a Government of India organisation extends full co operation and help to Export oriented firms for pre shipment credit and supplier's credit which enables exporters to extend term credit to buyers on eligible goods at the pre shipment stage.
Indian firms can avail One more service called Guarantee Facilities available with Exim Bank which guarantees to facilitate execution of export contracts and import transactions.
Risk protection against default payment by buyers on goods and services on credit terms provided by the Export credit Insurance and further exporters can avail protection against political and commercial risks.Political risk means a civil war or violence beyond the control of exporter, which cause shipment schedule change and subsequent delay in delivery of goods within the specified time. Commercial risk means insolvency of the buyer, by opting deliberate non payment on goods already agreed by them.
Why Exporters Should Use Exim Bank?
Some of the following facilities are availabe in the Bank:
Short term financing and discounting of the Exporter's receivables covered under EXIMBANK's Export Credit Insurance. It covers the gap between the manufacturers production cost expended and their income from sales.
source: http://www.eximguide.com/
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