Pre-Shipment Financing (PSF)

Pre-Shipment Financing (PSF) is a type of short-term working capital financing that provides funding to exporters by Bank of China (Thai) Public Company Limited (BOCT) inclusive but not limited to exporter/seller/trader/manufacturer to purchase the necessary raw materials for further processing, fabricating, packing, transportation, warehousing, etc. These funds are used to prepare the goods under purchase orders and/or sales contract prior to the shipment. PSF helps businesses to finance your production cycle by providing working capital upfront to cover the pre-shipment costs.

Trade expansion and scalability can assist exporters in capitalizing on opportunities while also overcoming payment and capital-related difficulties. This is achieved by:

1. Reducing pressure on working capital, freeing up funds during purchase and production.
2. Overcoming capital and payment challenges to seize opportunities.

1. Exporters who often face a shortage of working capital.
2. Exporters who need funding to pay for the manufacturing or procurement of goods before the products are shipped or delivered to the buyers.
3. Exporters who need to fulfill an order or contract, but do not have the funds to cover the cost of production or procurement.

1. The exporter shall sign a financing agreement to set up a Pre-Shipment Financing (PSF) credit facility with BOCT.
2. Submit application for pre-shipment financing along with sales contracts, purchase orders, and other relevant documents.
3. The Pre-shipment fund shall be transferred to the exporter's account after the bank's approval as per the instruction on the application form.
4. The exporter shall open an account in BOCT as nominated account for receiving  payment from the buyer.
5. When the buyer effects payment at maturity, BOCT shall recognize it as repayment  for the Pre-Shipment financing.

Please refer to standard rates released by BOCT via: https://www.bankofchina.co.th/en-th/service/information/service-rates-and-tariffs/service-charges-for-export.html

1. Application for Pre-shipment Financing
2. Sales contract / Purchase Order / other relevant documents