Export Finance for Indian SMEs — Complete Guide

The Problem

Indian exporters face a critical working capital gap between production and payment realisation. International buyers demand credit terms of 30 to 90 days while manufacturers need funds upfront. Without structured export finance, SMEs cannot fulfil large export orders.

The Impact

Lack of export finance causes Indian SMEs to decline large orders, lose global buyers, and remain stuck in domestic markets despite having export-quality products..

The Solution

BlueberryFM structures end-to-end export finance solutions including pre-shipment credit, post-shipment credit, Letter of Credit discounting, ECGC insurance, and export factoring through our network of RBI-regulated banking partners.

Export Finance Options

Pre-Shipment Credit (Packing Credit): Working capital to manufacture and pack goods before shipment
Post-Shipment Credit: Finance against export documents after shipment
Letter of Credit (LC): Bank-guaranteed payment instrument from buyer's bank
ECGC Insurance: Export Credit Guarantee Corporation cover against buyer default
Export Factoring: Immediate liquidity against export receivables
Buyer's Credit: Foreign currency financing for export transactions

The Process

Export Finance Needs Assessment
Document Preparation and KYC
Bank Partner Matching
Credit Facility Structuring
ECGC Cover Arrangement
Disbursement and Monitoring

Related Services

Frequently Asked Questions

What is pre-shipment credit?

Pre-shipment credit (packing credit) is a short-term working capital loan provided by banks to exporters to finance the purchase of raw materials, manufacturing, and packing of goods before shipment against a confirmed export order or LC.

What is ECGC and why do exporters need it?

ECGC provides insurance cover to Indian exporters against the risk of non-payment by foreign buyers due to commercial or political reasons. It is strongly recommended for all export transactions.

What is the interest rate on export packing credit?

Export packing credit is offered at concessional rates by RBI mandate. Current rates are typically 7–10% per annum depending on the bank and credit profile.