Self liquidating loan wiki
The bank issuing the packing credit will usually advance the partial or full proportion of the invoice, depending on the assumed risk.
The packing credit is especially very viable for exporters who export goods overseas as it has a more flexible repayment plan than the usual bank loans.
Yet despite this, the lack of experts and practitioners in trade finance is a real problem, and the number of specialised trade financiers is falling.
That said, the benefits of trade finance to the economy speaks for itself.
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Trade Finance Global (TFG) assists companies with raising debt finance.
While we can access many traditional forms of finance, we specialise in alternative finance and complex funding solutions related to international trade.
Packing credit is the most commonly used trade finance tool by an exporter.
Banks, non-banks, funders and alternative financiers are the main providers of trade finance,…
read more →Unlike Wall Street equities trading, trade finance focuses on companies producing or trading goods overseas.
The Self-liquidating feature is the most significant feature of packing credit.
The loan can be liquidated against the final payment of the goods and services or can even be converted to post-shipment finance post the shipment of the goods.