Trade Finance check0 / 1 answered · 0 correct
Check 1
When is post-shipment finance used?
Post-shipment Finance
Understand financing after goods have shipped but before final payment.
Where the funding gap arises
The exporter may have shipped and presented documents but still wait for buyer payment, document acceptance or a future LC maturity.
Possible techniques
Negotiation, discounting, receivables finance, factoring or other facilities can bridge the period, depending on the instrument and risk.
Documents matter
Clean transport and commercial documents, evidence of shipment and a bank undertaking can affect eligibility.
Risk and recourse
Who carries buyer, issuing-bank, document and country risk depends on the exact financing agreement.
Remember thisPost-shipment finance bridges the time between performance/shipment and final cash receipt.
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