Pre-export Finance

Pre-export financing (PXF) allows suppliers to get early payment on a portion of their customer’s order prior to shipment, and in many cases even production. This allows the supplier to effectively manage their working capital to purchase raw materials or other necessary costs to enable production activities.

There are 2 options for suppliers to obtain pre-export financing:

1) Supplier centric PXF 

This offering is available through our receivables financing facility after a thorough review of the supplier’s obligors and own financial history. This may be done with no acknowledgement from the supplier’s customer. The financing rate will be based on the credit standing of the supplier.

2) Buyer centric PXF 

Pre-export financing may also be backed by the buyer in our traditional supply chain finance arrangement. This usually results in a much lower financing rate as it is based solely on the credit rating of the buyer. Due to the differential in credit rating, we work with our buyer and supplier partners so they may both profit from this arrangement. The buyer offers the supplier financing on their purchase order and the supplier allows the buyer to extend payment terms on their invoice or reduce the overall price of goods.

Pre-export financing is a very effective tool for managing working capital at the supplier, which may lead to an improvement in the buyer’s supply chain in the following key areas:

  • Reduced supply chain risk / disruption
  • Improved lead time accuracy
  • Decreased quality issues