Question

Difference between pre shipment and post shipment finance

Answer 1

Pre-Shipment finance is an arrangement of providing credit  to the exporters before the shipment of goods for the completion of the export order. This arrangement is carried out by the bank  for the period spanning between the shipment of goods and the realization of export proceeds

Post-Shipment Finance means providing credit to the concern exporters after the shipment of goods so that there is no dearth of working capital .