Export Packing Credit (EPC)/ Packing Credit in Foreign Currency (PCFC)

Packing Credit
Packing credit is basically a loan provided to exporters to purchase raw materials, process, manufacture, pack, market and transport the required goods and services procurement before actual shipment. At times, the packing credit is also used for financing the working capital for companies listed as exporters.

Working Capital Finance

Each business has its own unique set of requirements so we have a dedicated team of experts who work with you to understand the specific nature of your business and structure solutions most suitable for you. We offer a complete bouquet of working capital facilities to help you manage your cash flow and ensure the smooth running of your business.

A working capital loan is a loan that has the purpose of financing the everyday operations of a company. Working capital loans are not used to buy long-term assets or investments and are instead used to cover accounts payable, wages, etc. Companies that have high seasonality or cyclical sales cycles usually rely on working capital loans to help with periods of reduced business activity.

Features and benefits:

  1. Quick and hassle-free process
  2. Customised and flexible financial solutions
  3. Customer-oriented services

Packing Credit Terminology

Generally, importers are not ready to advance payments to exporters as it is not secure and full of risk for them. In such scenarios, the facility of export packing credit supports the exporter’s supply chain and provides them funds to bridge the gap till the final payment. The bank issuing the packing credit will usually advance the partial or full proportion of the invoice, depending on the assumed risk. The packing credit is especially very viable for exporters as it has a flexible repayment plans than the usual bank loans. The loan can be granted in either the exporter’s currency or another easily convertible currency mutually decided by both the exporter and the lending bank.
Banks and other lending institutions follow their internal processes such as verification of the buyer, scrutiny of the purchase order or the letter of credit to authenticate the transaction. However, the documentation and the credit process is not very complicated in a packing credit loan.


The packing credit has the following features:

Self-liquidating: The Self-liquidating feature is the most significant feature of packing credit. The loan can be liquidated against the final payment of the goods and services or can even be converted to post-shipment finance post the shipment of the goods. This is extremely beneficial to small exporters who may not have the required capital. This also eliminates a lot of risk from the financing as the bank has the assurance of payment before the exporter receives the proceeds.

Credit to Buy Goods: Packing credit is a convenient way to purchase expensive goods or raw materials even if they exceed the set budget.

Covers Manufacturing Expenses: Packing credit also covers the manufacturing – related expenses like wages, a cost of raw materials, etc. This is especially useful if the exporter has outsourced all or a part of the goods to be shipped.

Lower Rate of Interest: Packing credit charges a lower rate of interest as compared to a typical overdraft facility. All the banks may not have standard interest rates for packing credit as it varies depending on the business’ nature, borrowing amount, etc. However, it will surely be lower than various standard loans.

Flexible Terms of Credit: Due to its self-liquidating feature and customized loans, packing credit enjoys flexible terms.

How can we help you?

Contact us at the BizFin Service office or submit a business inquiry online.