Export Order Financing refers to a short-term trade finance service where CEXIM, after the seller (exporter) receives valid orders from the buyer (importer) by remittance or collection documents, provides the seller (exporter) with working capital for purchase of raw materials, production, storage and transportation of goods, etc. before shipment, and gets repayment from sales revenue and other sources of funding of the seller (exporter).

Benefits for Exporters

Simple Formalities: Formalities of export order financing are simpler and easier than that of other short-term finance services; 

Accelerating Cash Flow: The exporter is able to obtain capital for the purchase in advance, thus helping alleviate financial strain;

Increasing Trade Opportunities: The exporter’s trade opportunities are increased as the overseas importer’s payment is deferred;

Avoiding Exchange Exposure: The exporter obtains funding in advance, thus avoiding adverse currency fluctuations in the forward market. 

When Do You Choose Export Order Financing?

The exporter encounters liquidity problem after receiving orders from importers;

The exporter finds a new business opportunity before shipment and the expected rate of return is higher than the interest rate of financing.

Tips

Our bank does not provide financing without trade background or in investment business;

Before applying for export order financing, a credit facility is required; the requirements for customers who have export credit insurance will be lower.