Pre-Export Finance

Stephen A. Jones ()
Additional contact information
Stephen A. Jones: AXS Trade Finance Ltd.

Chapter 11 in The Trade and Receivables Finance Companion, 2019, pp 149-159 from Springer

Abstract: Abstract Agricultural and other commodity producers often require finance to grow or extract raw materials which are pre-sold. Local finance may not be available to the producer and needs to be sought from an external financier, or even from the buyer themselves. Pre-export finance is high risk for the financier as the produce or commodity may never be delivered or to the correct grade and quality. It is important therefore that the risks are carefully evaluated, and the pre-export financing structured to minimise the performance risk of paying for the commodity, in whole or in part, prior to its production and delivery. The key risks are highlighted in the chapter and payment structures described which provide risk mitigation.

Keywords: Advance payment guarantee; Credit facility; Letter of credit; Payment structure; Performance guarantee; Pre-export finance; Prepayment; Pre-shipment inspection; Structured facility; Trade loan; Warehouse receipt (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-25139-0_11

Ordering information: This item can be ordered from
http://www.springer.com/9783030251390

DOI: 10.1007/978-3-030-25139-0_11

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().