Green Loan Principles and Pre-shipment finance: Difference between pages

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(GLP).
''Supply chain finance''.


The Green Loan Principles are a voluntary framework for green loans, issued by the Loan Market Association (LMA).  
Financing provided to a seller of goods, for their sourcing, manufacture or conversion, before delivery to the buyer. Pre-shipment finance can also be applied to services.


The finance provider will normally require an appropriate purchase order, letter of credit or bank payment obligation in addition to evidence of the seller's ability to perform under its contract with the buyer.


The wholesale green loan market aims to facilitate and support environmentally sustainable economic activity.


In this context, the GLP were developed by the LMA to promote the development and integrity of the green loan product.
Pre-shipment finance is also sometimes known as 'packing finance' or 'packing credit', referring to the preparation and packing of goods for shipment.


The GLP are designed to create a high-level framework of market standards and guidelines, providing a consistent methodology for use across the green loan market, whilst allowing the loan product to retain its flexibility, and preserving the integrity of the green loan market while it develops.
It is also sometimes known as 'pre-export finance'.


The GLP build on and refer to the Green Bond Principles of the International Capital Market Association, with a view to promoting consistency across financial markets.


==See also==
*[[Bank payment obligation]]
* [[Finance]]
*[[Letter of credit]]
*[[Post-shipment finance]]
*[[Receivables finance]]
*[[Supply chain finance]]


== See also ==
[[Category:Trade_finance]]
* [[ESG investment]]
* [[Green]]
* [[Green asset]]
* [[Green bond]]
* [[Green Bond Principles]]  (GBP)
* [[Green finance]]
* [[Green loan]]
* [[International Capital Market Association]]  (ICMA)
* [[Loan Market Association]]
* [[Social Loan Principles]]  (SLP)
* [[Sustainability]]
* [[Sustainability Linked Loan Principles]]  (SLLP)
 
 
==Other resources==
*[https://www.lma.eu.com/application/files/4716/7715/0338/Green_Loan_Principles_23_February_2023.pdf Green Loan Principles - February 2023]
*[https://www.lma.eu.com/legal-regulatory/spotlight-guidance-glp-and-sllp?search_str=Green%20loan%20principles LMA Spotlight on Guidance to the GLP and SLLP]
 
[[Category:Corporate_financial_management]]
[[Category:Ethics_and_corporate_governance]]

Revision as of 06:40, 11 March 2023

Supply chain finance.

Financing provided to a seller of goods, for their sourcing, manufacture or conversion, before delivery to the buyer. Pre-shipment finance can also be applied to services.

The finance provider will normally require an appropriate purchase order, letter of credit or bank payment obligation in addition to evidence of the seller's ability to perform under its contract with the buyer.


Pre-shipment finance is also sometimes known as 'packing finance' or 'packing credit', referring to the preparation and packing of goods for shipment.

It is also sometimes known as 'pre-export finance'.


See also