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What is the need of packing credit in business?
According to our experts of Packing need assignment help, packing credit is required for all the exporters whoare used as a pre-shipment amount that also has an interest rate. This packing credit is usually given as per the instructions of the ReserveBank on behalf of the government to encourage them to earn foreign currency that will strengthen the financial status of the country.
Packing credit is a loan provided to the exporters or sellers, but there are times it is also used as the working capital to come across the supplies of salaries, travel expenditures, useful payments, etc.
Packing credit is the most valuable part utilised by any exporter because this is an integral componentof any small or medium enterprise for their funding. So it is time now to learn about the features of the packing credit.
Features of packing credit:
- Self-liquidating
- Credit to buy goods
- Adjusts the manufacturing expenses
- Lowers the rate of interest
- Flexible terms of credit
Types of packing credit:
- Extended packing credit loan
- Packing credit loan (hypothecation)
- Packing credit loan (pledge)
- Secured shipping loans
- Advances against back to back letter of credit
- Red or green clause letter of credit
- Advances against export incentives
- Advances against duty drawback
- Packing credit for imports against entitlements under advance license
- Pre-shipment credit in foreign currency (PCFC)
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