Export Financing

Definition:


Pre-export financing: loan given by Citibank® to the exporter to provide liquidity for buying or processing goods to be exported.

Post-export financing: loan provided to allow the exporter to give better financing terms to his buyers.

The terms and conditions can vary, depending on the nature of the transaction and product.

Advantages:


Provide the exporter with enough liquidity to buy, prepare and/or produce the goods to be exported.

Improve the exporters’ capability for financing his buyers. This may become a important marketing tool for the exporter’s products.

Costs:


Spread over a base rate (Libor, Prime) or a fixed rate.

If the customer is not sure of the shipping date and/or does not want to pay pre-canceling charges, the transaction can be funded and priced in a Prime base.


Go back to International Trade





related products
 
International Trade
Direct Collection
Documentary Collection
Documentary Letter of Credit
Forfaiting with Recourse to the Exporter
Forfaiting without recourse to the exporter