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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.

Product Features
  • 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
Eligibility Requirements
  • 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.