Ex-Banker Advisory Ahmedabad, Gujarat
+91 9664500277 smecfoservices@gmail.com
Cross-Border Trade & Export Credit

Export Credit Finance & Pre/Post-Shipment Advisory

Advisory and syndication of Pre-Shipment (EPC/PCFC) and Post-Shipment (FBD/FBP) financing for merchant and manufacturer exporters across Gujarat and Pan-India.

Funding Quantum
₹50 Lakhs – ₹50+ Crores
PCFC Benchmark Rate
SOFR + 1.25% to 2.50%
Subvention Subsidy
Up to 3% IES Rebate
Credit Facility
Pre & Post Shipment
Global Trade Financing

Maximize Global Export Competitiveness with Low-Cost Credit

Exporters in Gujarat (pharmaceuticals, ceramics, textiles, agro-commodities, chemicals, engineering components, diamonds & jewelry) face long working capital cycles due to extended overseas transit and 90–120 day buyer credit terms. Relying on domestic INR working capital lines at 10%–11% increases production costs and erodes export margins.

At SME CFO Services, founded by ex-bankers CA Rochak Jain and Yogesh Patel, we help export enterprises switch to Foreign Currency Packing Credit (PCFC) and Foreign Bill Discounting (FBD), unlocking international borrowing benchmarks (SOFR/EURIBOR) that reduce overall borrowing costs by up to 300 to 500 basis points.

Export Financing Product Spectrum

Facility Name Denomination Purpose & Scope Effective Cost Benchmark
Pre-Shipment Packing Credit (EPC) INR (Indian Rupee) Financing raw materials & processing against confirmed export order / LC 8.25% – 9.50% (Minus IES subsidy)
Packing Credit in Foreign Currency (PCFC) USD, EUR, GBP, JPY Low-cost foreign currency credit for export manufacturing SOFR + 1.25% – 2.25% p.a.
Post-Shipment Bill Discounting (FBD / FBP) INR / Foreign Currency Instant liquidity upon presenting export shipping documents & BL SOFR + 1.00% – 1.75% p.a.
Export Gold Card Scheme Composite Limit Fast-track credit sanctions and preferential rates for 3-year track record exporters Concessional Tariff Tiers

Eligibility Criteria for Exporters

Exporter Credentials
  • IEC Registration: Valid 10-digit Import Export Code issued by DGFT.
  • RCMC Registration: Member of relevant Export Promotion Council (APEDA, CHEMEXCIL, EEPC, TEXPROCIL, etc.).
  • Confirmed Orders / LC: Irrevocable export LC or confirmed sales contract from verified foreign buyers.
  • Caution List Clearance: Name must not appear in RBI / ECGC Defaulters or Caution List.
Financial Norms
  • Export Realization Track Record: Timely past EDPMS closure of shipping bills within 9 months.
  • Turnover: Minimum annual export turnover of ₹2 Crores.
  • Collateral Security: 25% to 75% primary collateral (or under CGTMSE for MSE exporters).
  • ECGC Policy: Buyer-wise / Whole-turnover ECGC credit insurance coverage.

Mandatory Document Checklist

Statutory & Financials:
  • IEC Copy, GSTIN, and RCMC Membership Certificate.
  • Last 3 years Audited Financials with Tax Audit & 3CD.
  • CMA Data projecting export order execution pipeline.
  • Last 12 months EEFC & INR Bank Account Statements.
  • EDPMS / IDPMS compliance certificate from current AD Bank.
Export Order Details:
  • Confirmed Export Purchase Orders / Proforma Invoices.
  • Foreign Buyer Profile & Country Risk Assessment.
  • ECGC Buyer Limit Approval (BLA) copy.
  • Past 1-year BRC / e-BRC / FIRC realization summaries.
  • Collateral property valuation & search reports.

Ex-Banker Forex & Hedging Strategy

When borrowing in foreign currencies (PCFC), businesses naturally hedge currency risk against their upcoming USD/EUR export receivables. Our team designs integrated forward contract lines and interest subvention claims, safeguarding your margins against volatile foreign exchange fluctuations.

Frequently Asked Questions

Export Packing Credit (EPC) is provided in Indian Rupees (INR) to finance the procurement of raw materials, processing, manufacturing, and packaging of goods meant for export. PCFC (Packing Credit in Foreign Currency) is the same facility disbursed in major global currencies (USD, EUR, GBP) at international benchmark SOFR/EURIBOR rates, resulting in substantially lower borrowing costs (typically 3% to 5% p.a. lower than INR lending).

Post-Shipment credit is extended after the goods have been shipped against accepted export bills, invoices, and shipping documents (Bill of Lading / Airway Bill). It is provided via Foreign Bill Discounting (FBD) or Foreign Bill Purchase (FBP) and is automatically liquidated when foreign buyer remittances hit your bank account.

Under the Government of India's Interest Equalization Scheme (IES) for MSME manufacturer exporters, eligible enterprises receive an interest subvention (subsidy) of 2% to 3% on pre- and post-shipment rupee export credit, bringing effective INR interest rates down significantly.

ECGC provides credit risk insurance against foreign buyer commercial risks (insolvency, protracted default) and political risks (war, foreign exchange transfer delays). Banks require or offer concessional margins when export limits are covered under ECGC whole-turnover exporter policies.

Pre-shipment credit is generally sanctioned for 90 to 180 days (extendable up to 270/360 days for specialized heavy goods). Post-shipment credit corresponds to the trade usance period up to 180 days from the bill of lading date.

We structure foreign currency PCFC limits, calculate optimal currency hedging envelopes, map eligible IES interest subsidies, prepare bank CMA projections, and negotiate sub-limits across leading authorized dealer (AD Category-1) commercial banks.

Trade & Debt Advisory Services

Export Credit Finance Letter of Credit (LC) Bank Guarantee (BG) Working Capital (CC/OD) CGTMSE Loans
Need PCFC / Export Limit Syndication?

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