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Import Finance

27, Aug ,2020

Import Finance

While trading overseas, sellers may utilize an export letter of credit. It helps to ensure that the seller…

Import Finance

With a population of over 3.1 million and links to key countries around the globe, Dubai is a great place to start a business. However, even in the UAE, there are several challenges a small business can expect to face.

one of the biggest obstacles faced by exporters is to raise sufficient capital to oversee their day to day operations, while also covering the costs associated with orders made by overseas customers. Under such circumstances, it is essential to seek the assistance of an export finance provider who can help you with required monetary funding.

To find a trusted export finance company in the UAE can be a challenge in itself. While some of them charge extremely high fees for their services, others insist on tight payment windows that can put you under even more financial pressure. As one of the region’s top trade finance agencies, Credico Capital understands the importance of export financing and flexible repayment schedules. Read through to understand more about the concept of export financing and how it can help you.

WHAT IS EXPORT FINANCING?

When a business wishes to expand into foreign markets, export financing plays a crucial role in the process. In most cases, export financing is provided by a bank. This often comes after the exporter has secured the assistance of a trade finance agency, such as Credico Capital. There are also a growing number of alternative financial institutions offering such services directly. Regardless of whom it is obtained from, export financing essentially allows a business to access money from a sale before the customer’s actual payment is processed. This provides the exporter with the capital needed to package and ship the customer’s order, as well as to cover additional costs. The timeframe in which an exporter is expected to repay their lender will vary depending on their specific agreement. That being said, the most reasonable institutions allow their clients to take up to 180 days to send repayment. In the vast majority of cases, this grants the exporter plenty of time to complete an order and access their funds. It is important to note that export financing is often broken down into two categories. These are pre-shipment and post-shipment. You’ll find both forms discussed in detail in the following sections.

WHAT IS EXPORT FINANCING?

When a business wishes to expand into foreign markets, export financing plays a crucial role in the process. In most cases, export financing is provided by a bank. This often comes after the exporter has secured the assistance of a trade finance agency, such as Credico Capital. There are also a growing number of alternative financial institutions offering such services directly. Regardless of whom it is obtained from, export financing essentially allows a business to access money from a sale before the customer’s actual payment is processed. This provides the exporter with the capital needed to package and ship the customer’s order, as well as to cover additional costs. The timeframe in which an exporter is expected to repay their lender will vary depending on their specific agreement. That being said, the most reasonable institutions allow their clients to take up to 180 days to send repayment. In the vast majority of cases, this grants the exporter plenty of time to complete an order and access their funds. It is important to note that export financing is often broken down into two categories. These are pre-shipment and post-shipment. You’ll find both forms discussed in detail in the following sections.

WHAT IS EXPORT FINANCING?

When a business wishes to expand into foreign markets, export financing plays a crucial role in the process. In most cases, export financing is provided by a bank. This often comes after the exporter has secured the assistance of a trade finance agency, such as Credico Capital. There are also a growing number of alternative financial institutions offering such services directly. Regardless of whom it is obtained from, export financing essentially allows a business to access money from a sale before the customer’s actual payment is processed. This provides the exporter with the capital needed to package and ship the customer’s order, as well as to cover additional costs. The timeframe in which an exporter is expected to repay their lender will vary depending on their specific agreement. That being said, the most reasonable institutions allow their clients to take up to 180 days to send repayment. In the vast majority of cases, this grants the exporter plenty of time to complete an order and access their funds. It is important to note that export financing is often broken down into two categories. These are pre-shipment and post-shipment. You’ll find both forms discussed in detail in the following sections.

WHAT IS EXPORT FINANCING?

When a business wishes to expand into foreign markets, export financing plays a crucial role in the process. In most cases, export financing is provided by a bank. This often comes after the exporter has secured the assistance of a trade finance agency, such as Credico Capital. There are also a growing number of alternative financial institutions offering such services directly. Regardless of whom it is obtained from, export financing essentially allows a business to access money from a sale before the customer’s actual payment is processed. This provides the exporter with the capital needed to package and ship the customer’s order, as well as to cover additional costs. The timeframe in which an exporter is expected to repay their lender will vary depending on their specific agreement. That being said, the most reasonable institutions allow their clients to take up to 180 days to send repayment. In the vast majority of cases, this grants the exporter plenty of time to complete an order and access their funds. It is important to note that export financing is often broken down into two categories. These are pre-shipment and post-shipment. You’ll find both forms discussed in detail in the following sections.