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Pre-Export Financing

Pre-export financing is a special form of working capital lending in which the borrower is given funds needed to obtain or manufacture goods that have been ordered by a foreign buyer. As such, financing is normally earmarked for individual sales. Documentation of each sale must be provided to the lender, often in the form of a Letter of Credit with proceeds assigned to the pre-export financing lender. Generally only a percentage of the sale value is loaned to the borrower.

Edited by Michael C. Dennis