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Export transactions typically begin legally when the supplier or seller submits an export invoice or bill. This invoice outlines the specific details of the goods or services being sold, including their specifications, value, quantity, and relevant trade information to facilitate the logistics process. The conditions of payment for the export and information on when the buyer must make the final payment on the invoice are two other significant pieces of information included in the document. The bill or invoice outlines the responsibility that the exporter/seller must meet as well as the number of days that the buyer must wait to make payment following the day that the obligation is fulfilled. Discounting bills is an excellent export finance solution for Indian exporters to address short-term cash flow issues. In the blog post, you will be instructed on how to use export bill discounting to your advantage. But first, you need to understand what export invoice discounting is and it...

One useful financial instrument that might assist companies in entering foreign markets is export credit. It refers to financing provided by banks or financial institutions to exporters, enabling them to manage cash flow and cover production or shipment costs before receiving payment from the importer for the goods or services delivered. Nevertheless, there are a few myths regarding export credit that may keep companies from using this valuable asset. Here are eight widespread myths: Export Credit is Only for Large Corporations The misconception that exports credit is only for large corporations stems from a few factors: ●         Complexity: The application process for export credit can seem complex, and many businesses can believe that they lack the resources or expertise to navigate it. ●         Large transactions: Some export credit programs can have minimum transaction requirements that can be pro...

The financial tools and products used by businesses to promote global trade and commerce are referred to as trade finance. It is a phrase used to describe various strategies that are employed to make international trade easier. The purpose of trade finance is to make it easier for businesses to transact with each other and to reduce the risks involved in global trade for both buyers and sellers. Key Components of Trade Finance 1. Factoring A financial agreement between the client and the factor is implied by factoring, wherein the client's company receives advances from the factor, a financial institution , in exchange for its receivables. This financing strategy involves a company selling its trade obligations outright to a factor, or third party, at a discount. Trade Finance: A Comprehensive Overview Although there are many other kinds of factoring, recourse and non-recourse factoring are the two most well-known. Recourse Factoring: ●       ...

A group of financial products known as supply chain finance enable companies to extend their terms of payment to suppliers while giving them the choice to receive payment ahead of schedule, thereby optimising cash flow. There are several obstacles in the way of efficiently managing cash flow and working capital. Careful preparation is needed to strike the correct balance between investing in long-term growth and preserving enough liquidity. Moreover, cash flow can also be affected by unanticipated costs, shifts in consumer behaviour, and economic changes. How to Optimise Your Supply Chain Finance Strategy Key Strategies for Optimising Your Supply Chain Finance Strategy 1. Considering Supply Chain Finance Without Recourse First, you need to understand supply chain finance without recourse or non-recourse factoring. In this, the factoring company assumes the credit risk of your clients. This implies that in the event that your clients miss payments, you won't be responsible fo...