Recommend method of foreign trade financing for textile

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Problem 1: Recommend the best method of foreign trade financing for an Indian Textile Exporter who is growing steadily year by year. The company exports textiles abroad mainly to US and Europe. As business has increased, the requirement for funds to finance international trade has increased as well.

The options available for the company are:

  1. Line of credit
  2. Letter of credit
  3. Factoring (With recourse or without recourse)
  4. Forfaiting
  5. Export Import Bank of India which offers a wide range of services which includes project exports, providing loans, extending letters of credit and guarantees, extending lines of credit, buyer's credit, marketing advisory services, offering Term Loans, and extends financial support to create export capability in grassroots enterprises.
  6. Exim Bank has an overseas investment finance program whereby they provide facilities such as loan to Indian companies to invest in overseas ventures, extends letters of credit and guarantees.
  7. ???Foreign credit insurance

Reference no: EM132519314

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