Question

Distinguish between pre shipment finance and post shipment finance

Answer 1

Meaning: Pre-Shipment financerefers to the credit extended to the exporters prior to the shipment of goods for the execution of the export order. Post-Shipment Finance Post-shipment finance refers to the creditextended to the exporters after theshipment of goods for meeting working capital requirement.

Answer 2

Pre shipment finance & Post shipment finance

Pre-Shipment finance refers to the credit reached out to the exporters before the shipment of merchandise for the execution of the fare request. Post-Shipment Finance and Post-shipment fund alludes to the credit stretched out to the exporters after the purchase of merchandise for meeting the working capital necessity.

 It is allowed for such services as buy, preparing, assembling, or pressing of products as characterized by the Reserve Bank of India and many more.