- 20 Marks
ITF – APR 2024 – L3 – Q8 – Post-Shipment Finance Products
Explain four post-shipment finance products: export bill negotiation, discounting, advance against banker's acceptance, and advance against export bill for collection.
Question
Post-Shipment Finance refers to an Advance or Loan extended to the exporter on the strength of documentation after goods have been shipped to the importer. It is more popular in Cross Border Trade transactions. This facility is extended to the exporter either on with or without recourse basis and is also applicable to both Documentary Credit and Non-Documentary Credit transactions.
REQUIRED With the above in view, explain very briefly, the following Post-Shipment Finance Products:
a. Export Bill Negotiation [5 Marks]
b. Export Bill Discounted [5 Marks]
c. Advance against Banker’s Acceptance [5 Marks]
d. Advance against an Export Bill sent for Collection [5 Marks] [Total Marks 20]
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