Qard Pre-shipment Export Financing
A Financing arrangement for exporters which is extended to help them utilize the facility to finance the purchase, processing, manufacturing or packing of goods meant for overseas market.
- Except for the terms and conditions that are not applicable to IFB, it is the same as the Export pre- shipment financing scheme in the Conventional Banking
- The facility is granted on the strength of bona fide [real, genuine] sales contract or export L/C opened in favor of the exporter or
- Could be availed in the form of secured/unsecured financing or lines of credit
- Enable exporters discharge their commitment by utilizing the advance for operating expenses related to the exporting activity
- Each advance shall be settled from the proceeds of the corresponding export L/C
- Maturity 4 month with a possibility of three month extension upon presenting acceptable reasons
- Recent business registration documents, renewed business/investment licenses, TIN certificates, recent tax clearances; at least three preceding fiscal years’ financial statements and recent financial statement not-older than three months.
- Client should have a minimum of 6 month experience and should present a sales contract/irrevocable export L/C
- Profitability analysis should be prepared for each sales contract
- New clients for the bank with 1 year of export experience and a transaction of USD 100,000 can be entertained
- Previous advance must be settled within the due date.
- Healthy credit relationship with other banks
- Financing requests for Birr 5.0 million and above should be backed by audited financial statements.