Pre-shipment finance and post-shipment finance are two important forms of export finance provided by banks and financial institutions to support exporters at different stages of an international trade transaction. Exporting involves several expenses before the goods are shipped and also creates a need for finance after shipment until the exporter receives payment from the overseas buyer. Therefore, adequate export finance is essential for maintaining liquidity, completing export orders on time, and ensuring smooth international trade operations. Pre-shipment finance refers to the financial assistance provided to an exporter before the actual shipment of goods. It is also commonly known as packing credit because it is generally used for purchasing, processing, manufacturing, packing, and transporting goods meant for export. The main purpose of pre-shipment finance is to provide working capital to the exporter so that the exporter can fulfil an export order without facing a shortage of funds. An exporter may receive an export order from a foreign buyer or may possess a valid export contract or letter of credit. Based on appropriate export documents, the exporter can approach an authorised bank for pre-shipment finance. The bank examines the export order, the creditworthiness of the exporter, the nature of goods, the buyer, the export market, and other relevant factors before sanctioning the facility. Pre-shipment finance can be provided in different forms. Packing credit in Indian rupees is one of the most common forms. Under this arrangement, the bank provides funds to the exporter for procuring raw materials, manufacturing or processing goods, paying labour charges, packaging, transportation and other expenses associated with preparing the goods for export. In suitable cases, banks may also provide finance in foreign currency, particularly when the exporter has foreign-currency-related requirements. The amount of pre-shipment finance depends on the value of the export order and the working-capital requirement of the exporter. The exporter normally has to submit documents such as the export order, letter of credit, confirmed contract, purchase order, or other evidence of the underlying export transaction. The bank may also require details regarding the goods, expected shipment date, insurance, and previous export performance. Pre-shipment finance serves several important purposes. First, it enables exporters to purchase raw materials and other inputs required for production. Second, it helps exporters meet manufacturing and processing expenses. Third, it supports packaging, labelling and transportation of export goods. Fourth, it allows exporters to complete export orders within the agreed delivery period. Finally, it prevents working-capital shortages from disrupting the export cycle. The procedure for obtaining pre-shipment finance generally begins with the exporter receiving an export order or establishing a valid export contract. The exporter submits the required documents to the authorised bank along with the finance application. The bank evaluates the proposal and sanctions the appropriate amount of credit. Once the facility is sanctioned, the exporter uses the funds for activities directly connected with the export order. After the goods