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have you ever wondered how exporters Finance their operations today we are diving into the world of packing credit loan lets break it down a packing credit loan is a short-term financing facility that Banks provide to exporters its primary purpose is to finance the purchase processing manufacturing packing and shipment of goods meant for Port but why is it necessary you ask well it helps exporters bridge the gap between the time they incur expenses to produce goods and the time they receive payment from overseas buyers its like a safety net ensuring that exporters dont fall into a financial Abyss while they wait for their payment this loan is typically secured by the export orders or letters of credit received from from foreign buyers so a packing credit loan is essentially a financial Lifeline for exporters ensuring their operations run smoothly within the packing credit loan there are two main facilities the running account and the order based facility but what do these terms mean