An exporter needs funds to procure raw materials and produce finished goods before sending shipment cross border. Packing credit facilitates the funding necessities of an exporter to manufacture the goods for the shipment.
One can avail export finance to meet varying working capital needs like the purchase of raw material, processing, manufacturing, warehousing, transportation or packing of items required for shipping.
This type of loan is available at competitive interest rates to ensure exporters can avail the necessary funds to complete orders. Export packing credit reduces the chances of missing out on available trade opportunities and helps a business grow meet larger demands with credit being available. This is essential from the working capital perspective as the buyers are often reluctant to make advance payments to the exporters.