Advance on Export Bills Facility is a post-shipment export credit extended to exporters, upon presentation of all relevant export documents, to finance the working capital need between the shipment of goods and the realization of proceeds.
The Advance on Export Bills Facility can be advanced for a period of 15 days.
The amount to be advanced to the exporter is up to a maximum of 90% depending on the financial strength and credit risk grade of the customer.
An Advance on Export Bills Facility shall be made to the customer after documentation has been completed in line with the Trade Service Process Operational Manual. Before crediting the advance amount to the customer’s account, nonetheless, the Customer Relationship Manager should take due care in checking whether the customer has already received a Revolving Export Credit Facility or a Pre-Shipment Export Credit Facility on the same document, and if any, Revolving Export Credit Facility or Pre-Shipment Export Credit Facility should be settled first.
The concerned officer from the Trade Service Process is responsible for ensuring the settlement of the loan from the export proceeds.
Eligibility
An exporter has to present complete and satisfactory export documents in compliance with the terms and conditions of the Export Letter of Credit. |
