Post shipment is a finance extended by the bank after effective shipment to bridge the gap.

  1. Post shipment is a finance extended by the bank after effective shipment to bridge the gap. Post shipment finance is required because at the Pre-shipment stage exporter gets only 60-80%. So balance amount need to be released to him after shipment.
  2. BASIS It is always extended against the evidence of shipment of export goods or supplies made to the designated agencies
  3. PURPOSE It is meant for financial Export sales receivables after the date of shipment of goods of the trade of realisation of export proceeds
  4. QUANTUM It can be extended by 100% of invoice value of goods.
  5. Generally exporters who have availed Packing Credit need finance to clear the packing credit availed. This can be done by availing the Post Shipment Finance from the lending institutes or banks. This advance or finance is made available by the lending institutes or banks in the form of Export bill discounting facility on raising bills along with the shipping documents and according to the terms and conditions of the L/C issued in favor of the exporter.
  6. The usage period generally is between 90 to 180 days starting with the date of shipment. Seller's Credit (extended to exporter) or Buyer's Credit (Overseas Buyer) is the two options available under post shipment finance.

It is a most preferred method to finance or fund the Export Receivables

The borrower and/or the guarantors have to provide the following documents to the banks or the lending institutions while submitting Overdraft against Gold Application. Certain documents may be demanded by the bank or the lending institutions in post sanction phase or on periodical basis.

  1. Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter?s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.
  2. Identity Proof : Valid Passport, PAN Card, Voter?s Card, Any other photo identification issued by Government Agencies.
  3. Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt.
  4. Business Profile on Company?s Letterhead.
  5. Partnership deed in case of partnership firms.
  6. Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.
  7. Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).
  8. Last one years? Bank statement of the Firm.
  9. If existing loan, then sanctioning letter and repayment schedule of the same.
  10. Firm/Company?s PAN Cards.
  11. Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
  12. Last one years? Bank statement of Individuals, Partners, Directors .
  13. SEBI formalities in case of listed companies.
  14. Share Holding pattern of Directors duly certified by a Chartered Accountant.
  15. List of the Existing Directors of the company from the Registrar of the Companies.