Murabaha Post Shipment/Revolving Export Financing
Unique Features
Murabaha Post Shipment (Revolving Export Facility) is an advance extended to exporters upon presenting acceptable export documents, except a bill of loading. The facility should be advanced against valid export documents.
In the case of post-shipment, Murabaha cannot be executed for goods already exported. However, Murabaha can be executed for the new purchase required for the next shipment against the assignment of proceeds that are not yet collected from the earlier shipments.
The exporter/customer appoints the bank as his/her/its agent to collect the proceeds on his/her/its behalf.
This financing requires banks and exporter to sign at least two agreements separately. One, the applicant will authorize the bank to collect the proceeds on his/her/its behalf as an agent. The second agreement will provide Murabaha financing to the exporter and authorize the bank, keeping for Murabaha financing.