ABSTRACT
Short-term finance for exports is a common form of finance in export trade. Banks prefer this type of finance as these are served over a short period of time. There does not exist any definition of “short-term finance” however, in commercial practice, such loans are usually offered for two years 1 . Finance for exporting consumer goods or pre-shipment and post-shipment finance are examples of short-term finance. Whereas pre-shipment finance is usually required by an exporter for manufacturing or acquiring goods for shipment, post-shipment loan (finance) is often required by exporters to cover expenses between the period of dispatch of goods and receipt of payment from the importer.
