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Pre Shipment Finance Limit Calculator

Work out pre shipment finance limit instantly with clear inputs, formula shown and shareable results.

About Pre Shipment Finance Limit Calculator

The pre-shipment limit is sized on one production cycle's worth of turnover, since the facility revolves as each shipment liquidates the previous drawing. A longer cycle needs a larger limit for the same annual turnover.

Formula

Pre-shipment limit

Limit = (turnover / cycles per year) × advance rate × (1 - margin)

Worked example

With the default values below, Pre Shipment Finance Limit Calculator returns Pre-Shipment Finance Limit of $22,191,780.82. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Export Turnoverminimum 0
240,000,000
Production Cycle In Daysaccepts 1–365
60
Advance Rateaccepts 10–100 %
75 %
Promoter Marginaccepts 0–60 %
25 %

Results

Pre-Shipment Finance Limit
$22,191,780.82
Turnover Per Production Cycle
$39,452,054.79
Production Cycles Per Year
6.08
Margin You Must Fund
$7,397,260.27

Step by step

  1. 1Values used
  2. 2Pre-shipment limit
  3. 3Pre-Shipment Finance Limit= 22,191,780.82
  4. 4Turnover Per Production Cycle= 39,452,054.79
  5. 5Production Cycles Per Year= 6.08
  6. 6Margin You Must Fund= 7,397,260.27

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

Why size on one cycle rather than annual turnover?

Because the facility revolves. Only one cycle is outstanding at any time if shipments are on schedule.

What lengthens the cycle?

Slow procurement, long manufacturing lead times and delayed documentation all extend it and increase the limit needed.

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