chapter  14
20 Pages

Government Export Financing Programs

Exporters prefer to be paid on or before shipment of the goods, whereas buyers want to delay payment until they have sold the merchandise. To expand export sales, many governments offer a wide choice of financing programs. Such assistance increases the exporter’s credit line needed for corporate and domestic transactions, neutralizes financing as a factor, and creates a level playing field with competitors in other countries who also benefit from similar financing programs.