Pre-Shipment Financing (Packing Loan)

Pre-Shipment Financing (Packing Loan)

Packing loan is pre-export financing scheme that allows you to access funds for financing your manufacturing processes or shipping of the goods against incoming LC. The Bank shall assess your performance and delivery risk.

FEATURES AND BENEFITS

Benefits to Exporter (Seller)

  • Support you with working capital required during manufacturing and shipping of the goods.
  • Seize more business opportunities by having enough financing to fulfill the orders.
  • Gain competitiveness by offering more attractive credit terms to your customers.
Process

  • Importer sends you LC through Issuing Bank.

  • CB Bank advises you of the incoming LC.

  • You apply for packing loan from CB Bank.

  • CB Bank credits your account up to 80% value of the LC.

  • You manufacture and ship the goods to the importer.

  • You present the shipping documents to CB Bank for negotiation basis.

  • CB Bank forwards the related shipping documents to importer through Issuing Bank.

  • Importer pays CB Bank via Issuing Bank.
RATES AND FEES (SUBJECT TO CHANGES)

Pre-arranged fees & charges

REQUIREMENTS

  • Packing Loan Application Form

  • Request Cover Letter with Company Letterhead

  • Sales contract

  • Incoming Commercial Letter of Credit (LC) acceptable to the bank

  • Commercial invoice

  • Export license issued by Department of Commerce (both original and copy)