Tag Archives: Trade Finance

Pre-shipment Finance or Packing Credit

Trade finance may come in the form of secured or unsecured loans or lines of credit from banks or financial institutions. Pre-shipment financing is especially important to smaller enterprises because the international sales cycle is longer than the domestic sales cycle.
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Forfaiting

International Forfaiting is gaining rapid popularity in export oriented countries with a global market size of more than US$ 300 billion annually.
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Bank Payment Obligation (BPO)

BPO is ICC’s response to new market needs to help deal with increasing cost pressures and changing risk dynamics arising as a result of widespread liberalization in emerging markets.
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International Chamber of Commerce (ICC)

ICC is headquartered in Paris and Harold McGraw III is the Chairman of ICC. Today ICC has thousands of member companies and associations from over 130 countries.
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Documentary Letter of Credit – Types

The fundamental purpose of a Letter of credit is to provide transaction payment security to the beneficiary and documentary performance to the applicant and hence all LCs are fundamentally similar. There are however a few categories of LCs which do have a customized usage.
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