Pre-shipment finance

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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