Page 11 - Plastics News April 2025
P. 11
AIPMA AT WORK
overview of export finance, highlighting the sig- up business to order delivery through an amal-
nificance of pre-shipment and post-shipment gamation of services provided by trusted alli-
credit, and the key guidelines and processes in- ance partners.
volved in securing such finance. He explained eli-
gibility criteria, required documentation, and the With its unique, tailor-made banking suite, Trade
computation of credit limits. He elaborated on Emerge is a first-of-its kind proposition inviting
the methods of computation of limits, including emerging businesses to optimize their trade
the Maximum Permissible Bank Finance (MPBF) journeys and expand their outreach through a
method, as a critical tool in determining sanc- revamped ecosystem.
tioned working capital for exporters. Key Takeaways:
He also covered the importance of adequate se- ♦ Understanding the framework of Export
curity, sanctioned limits, and how well-structured Trade Finance.
credit can reduce financing costs. The session
included a detailed discussion on the costing as- ♦ Comprehensive insights into pre-shipment
pects of export finance and practical ways to re- and post-shipment finance, including eligibil-
duce the financial burden on exporters. ity and processes.
♦ Strategies for reducing the cost of export fi-
Further, Mr. Vasavada touched upon the role of nance through optimized credit structuring,
Export Credit Guarantee Corporation (ECGC) in including the MPBF method.
mitigating credit risk, ensuring payment security,
and understanding country risk ratings. He also ♦ Managing credit risk with the support of
covered trade finance instruments such as Fac- ECGC and analysing country risk ratings.
toring and LC Negotiation.
♦ Exposure to trade finance instruments such
Mr. Bhavin Joshi elaborated on the benefits of as Factoring and LC Negotiation.
choosing ICICI Bank’s initiative Trade Emerge.
It offers a one-stop-solution addressing needs Following Mr. Joshi’s presentation, the floor was
of importers and exporters by ensuring requisite open for a Q&A session, where participants ac-
services are available under one roof. It captures tively engaged with the experts, seeking clari-
360-degree view of trade fulfilment and facili- fications on export finance practices. The in-
tates end-to-end customer journey from setting teractive session allowed for the exchange of
practical insights, further enhancing the learning
experience.
Over 40 participants attended the session, mak-
ing it a highly engaging and informative dialogue.
This webinar served as a vital resource for ex-
porters, equipping them with actionable knowl-
edge on financing tools, cost-effective trade
finance solutions, risk mitigation techniques,
and financial optimization strategies to enhance
global competitiveness.
April 2025 PLASTICS NEWS 11
