Friday, November 27, 2009

Financing Model For Export Credit Agencies

1-Agreement between importer and exporter

2-importer applies for LC

3-Importer’s bank issue LC to exporter’s bank

4- Exporter’s bank advices the LC to the exporter

5- Exporter applies for export credit guarantee

6-ECA sends export credit guarantee to exporter’s bank

7-Exporter ship goods to importer

8-Exporter forward documents to his bank

9- Exporter’s bank discount the LC based on the export credit guarantee

10- Exporter’s bank forwards document to the Importer’s bank

11- Importer’s bank release document to Importer

12-Importer pays his bank

13- Importer’s bank pays the exporter’s bank

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