What Is Export Finance or Packing Credit?
Export Finance (also known as Packing Credit) is a short-term loan given to exporters to finance the purchase, processing, packaging, and shipping of goods before receiving payment from foreign buyers.
It ensures exporters have the working capital needed between order and payment.
Who Should Consider This Loan?
Exporters of goods and services
MSMEs in global trade
SEZ or EOUs (Export-Oriented Units)
Traders with confirmed export orders
First-time exporters with LC (Letter of Credit)
Key Features of Packing Credit Loans
| Feature | Details |
|---|---|
| Loan Amount | Based on export order/invoice value |
| Interest Rate | Starting from 7% (subsidized under Interest Equalisation Scheme) |
| Tenure | Up to 180 days (can be extended) |
| Security | Can be unsecured for small exporters or backed by ECGC |
| Disbursement | Before shipment or service delivery |
Types of Export Finance
Pre-shipment Credit: Packing, raw material purchase, labor, etc.
Post-shipment Credit: Waiting for buyer payment? Bridge the gap.
Bill Discounting: Discounting export bills before maturity.
Export Factoring: Funding against export invoices.
Documents Required
Confirmed export order or Letter of Credit (LC)
IEC code, GST, PAN
Shipping and packing list
Bank account with export transaction history
KYC documents and export license
Why Choose Export Finance?
Smooth working capital cycle
Improved shipment timelines
Access to global markets with ease
Avail interest subsidies (Govt. of India support)
Export credit insurance protection through ECGC
Vizzve Makes It Easy
Vizzve Finance simplifies export funding through:
📑 Paperless documentation
🌐 Quick assessment of order-based credit
🔍 Access to ECGC-backed loan partners
💼 Expert support for first-time exporters
FAQs
Q1. Can I get a loan without an LC (Letter of Credit)?
Yes, with a confirmed export order and good history, Vizzve lenders may approve it.
Q2. Is export finance available for service exporters (IT, design, etc.)?
Yes, packing credit is available for both goods and services exporters.
Q3. What happens if the buyer delays payment?
You may convert to a post-shipment loan or use bill discounting to manage the gap.
Q4. Are there government subsidies for interest rates?
Yes, under the Interest Equalisation Scheme, eligible exporters get interest subvention.
Published on : 24th July
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed