Post-shipment finance provides liquidity after goods have shipped but before the exporter receives payment. Funding may be based on export invoices, bills, letters of credit, collections or insured receivables.
How does Post-Shipment Finance work in practice?
After shipment, the exporter presents the eligible invoice and supporting transport or trade documents to the finance provider. Funding is advanced or the receivable is purchased under the facility terms. The exporter or provider then collects from the buyer, and the proceeds close the financed amount, fees and any remaining balance when payment arrives.
What should a business document for Post-Shipment Finance?
Keep shipment evidence, invoice, transport documents, buyer acceptance, financed amount, maturity and collection route.
What should a business verify before relying on Post-Shipment Finance?
Document discrepancies, claims or delayed acceptance can extend the financing period or make the receivable ineligible.
