Packing Loan

Packing Loan refers to a special loan granted by CEXIM against the exporter’s business contract and original documentary credit, to finance the exporter’s purchase, production and packing before shipment. 

Packing loan is a pre-shipment short-term finance which enables the exporter to make the purchase, preparation, production and development of the trade successfully. 

Benefits for Exporters 

Reducing the Funds Tied Up: It alleviates the strains on working capital because the exporter’s own funds will not be occupied during stages of purchase, production and other preparation procedures; 

Seizing Trade Opportunities: Despite the lack of funds and the failure to obtain the advance payment, under packing loan the exporter is able to run business smoothly and seize trade opportunities. 

When Do You Choose Import Factoring? 

The exporter is in shortage of working capital, while the foreign importer disagrees with payment in advance but agrees to issue a documentary credit. 


Please provide written application form, sales contract with foreign parties, purchasing contract with domestic parties, introduction of the trade and the original copy of documentary credit, and sign a formal agreement with us; 

Our customer shall be the beneficiary of the documentary credit for packing loan and the issuing bank shall be a foreign bank with high creditworthiness; 

The original copy of the documentary credit and all amendments shall be filed with our bank after applying for packing loan; any subsequent amendment of the documentary credit shall obtain our written consent; 

The credit period of packing loan should start from the date of lending and last until the date of receiving payment from the issuing bank; 

The maximum amount of packing loan usually covers 70% of the documentary credit amount.