Question

Write short notes on Pre and post shipment credit.

Answer 1

hey!

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Pre Shipment Finance is issued by a financial institution when the seller want the payment of the goods before shipment. The main objectives behind preshipment finance or pre export finance is to enable exporter to:-

• Procure raw materials.
• Procure raw materials.Carry out manufacturing process.
• Procure raw materials.Carry out manufacturing process.Provide a secure warehouse for goods and raw materials.
• Procure raw materials.Carry out manufacturing process.Provide a secure warehouse for goods and raw materials.Process and pack the goods.
• Procure raw materials.Carry out manufacturing process.Provide a secure warehouse for goods and raw materials.Process and pack the goods.Ship the goods to the buyers.
• Procure raw materials.Carry out manufacturing process.Provide a secure warehouse for goods and raw materials.Process and pack the goods.Ship the goods to the buyers.Meet other financial cost of the business.

hope help u

Answer 2

Explanation:

Meaning: Pre-Shipment finance refers 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 credit extended to the exporters after the shipment of goods for meeting working capital requirement