Export financing bridges the gap between the day you pay for production and the day your buyer pays you. Common routes are pre-shipment credit, post-shipment receivable finance and credit insurance, offered by banks and export credit institutions.
Why does an exporter need financing?
You buy materials, produce, pack and ship before the money arrives. Payment terms agreed with the buyer can leave your cash tied up for weeks or months. Financing covers that gap so that a large order does not strain your daily operations.
What types of export finance exist?
In general there are three groups. Pre-shipment credit funds production and procurement before the goods leave. Post-shipment finance advances money against the export receivable, for example by discounting a bill or through factoring. Export credit insurance does not lend money, but it protects the receivable against non-payment and can make other financing easier to obtain.
Banks, Türk Eximbank and the central bank's rediscount facilities are the usual places to start. Programmes, eligibility and terms change from time to time, so read the current conditions on the institution's own pages.
What should you prepare before applying?
Lenders usually look at your export track record, your financial statements, the sales contract or proforma invoice, the payment method and the buyer's profile. A clear payment term, a defined delivery term and consistent shipping documents make the file easier to assess.
Decide in advance which currency you will invoice in and how you will manage exchange-rate risk, because the loan currency and the invoice currency affect your real cost.
Which mistakes are common?
Exporters often ask for finance after the order is already in production, mix up the loan purpose with the product limits, or forget that insurance and bank charges add to the total cost. Compare the full cost, not only the headline rate.
Conditions and eligibility differ by institution and over time. Confirm with your customs broker or financial adviser before you act.