How i executed my first Export business without investment

🚀 My First shipment of Export business without investment.

I finally landed my first export order after countless attempts. I used both offline and online channels to connect with buyers.

I had sent samples of handicrafts items initially to many buyers ,but it didn’t worked.I had to spent money on courier charges alsi, but persevered. And then one day I got my first export order. But I still had no money in hand and i was thinking is export business without investment possible.

But though my sheer determination and resourcefulness, I managed to execute and complete the order, and experience exporting without upfront cash. Here’s how I did it—and why it’s possible for first-time exporters like me to export any commodity if it is of good quality and demandable in the global market, no matter if you don’t have finance.Its 100% possible.

i approached my bank for getting the export finance against my export order.But the bank didn’t lend me finance simply on the basis of a simple export order .In fact most of the banks in our city don’t had the real export to export finance.So sometime they are not clear how to deal with any client who is interested in export and want ore shipment and post shipment finance.

I had managed to obtained the export order on the terms of 30% TT in advance and balance 70 after emailing the copy of BL to the buyer.

Do buyer give advance to new exporter:-

yes, definitely good buyer will give you advance for buying if they really like your products and consider you a genuine exporter.So try to be very polite with your buyers.Tell them the truth and negotiate with them honestly.

SO I received the advance from the buyer and purchased the goods from my supplier on partial after paying him the receive amount .

I had very good business relationships with my supplier also so they cooperated with me and gave me all the goods after receive some advance.

So after getting the goods I booked the container and when it’s exported I got the Bill of lading.Afyer receiving the copy of bill of lading i immediately email my buyer it’s copy.The buyer immediately transfered me the balance amount .After rrceythe amount i paid the supplier his left balance and kept the balance as profit.

💰 Export Finance: Pre‑Shipment & Post‑Shipment Explained

What is Pre‑Shipment Export Finance?

Also known as Packing Credit (EPC/PCFC), it helps exporters fund raw materials, manufacturing, and packing before shipment—even when they have no money in hand. Major banks like Axis Bank, IDBI, Union Bank, ICICI, and Bank of Baroda offer this in INR or foreign currency for up to ~360 days bajajfinserv.in+9bankofbaroda.in+9axisbank.com+9.

What is Post‑Shipment Export Finance?

This is credit provided after goods are shipped. Banks finance you against the shipment documents, helping bridge the gap until payment realization—sometimes even up to 100% of the invoice value eximguide.in.

🛡️ Collateral-Free Finance Options

1. CGTMSE Scheme

The Credit Guarantee Fund Trust for Micro and Small Enterprises enables exporters to get collateral-free loans. The government guarantees a significant portion—making banks comfortable lending without asset pledges eximbankindia.in+9en.wikipedia.org+9reddit.com+9.

2. Credit Guarantee Scheme for Startups (CGSS)

Especially relevant if you’re a first-time exporter or startup. This DPIIT‑recognized startup scheme can cover up to 80% of a loan without collaterals icicibank.com+2reddit.com+2reddit.com+2.

3. MSME Credit Card

Launched in 2025, this is a revolving credit facility of up to ₹10 lakh with automatic CGTMSE backing—ideal for working capital needs without collateral federalbank.co.in+9en.wikipedia.org+9en.wikipedia.org+9.

🏛️ Government & Bank Schemes for Exporters

RoDTEP (Remission of Duties & Taxes on Exported Products): Since June 1, 2025, exporters get reimbursements for embedded taxes to enhance competitiveness dgftguru.com+3reuters.com+3economictimes.indiatimes.com+3.
Interest Equalisation Scheme: Subsidizes interest rates on pre- & post‑shipment credit—up to 3% for MSMEs dgftguru.com+1axisbank.com+1.
EPCG Scheme: Lets exporters import capital goods duty-free if they fulfill export obligations dgftguru.com+1axisbank.com+1.
Duty Drawback Scheme: Refunds customs & excise duties on export raw materials en.wikipedia.org+15dgftguru.com+15eximguide.in+15.
MEIS / SEIS: Provide export incentives via duty credit scrips; support goods (MEIS) and services (SEIS) exporters dgftguru.com.
Alternative Funding Models: Government planning export factoring & trade credit insurance to deepen collateral‑free finance en.wikipedia.org+5reddit.com+5economictimes.indiatimes.com+5.

🔧 How I Exported With No Money

Confirmation before cash
I secured a buyer’s confirmed order and L/C—key to accessing export finance.
Applied for Packing Credit
With my order/L/C in hand, I approached my bank. They approved pre‑shipment finance (packing credit) based on the export order and future receivables—not collateral.
CGTMSE guarantee
To ease the bank’s risk, I used the CGTMSE scheme. This allowed a full loan without pledging assets.
Exported the goods
With funds from packing credit, I produced and shipped the goods.
Post‑shipment realization
Once shipped, I submitted export docs to avail post‑shipment finance and settle the loan before payment arrived.
Got paid
Payment from the buyer came through, cleared my bank dues, and the remaining profit was mine.

✅ Key Takeaways

Export without money is absolutely possible for first‑order exporters.
Use pre‑shipment finance (packing credit) to bridge cash gaps.
Leverage schemes like CGTMSE, CGSS, and MSME Credit Card for collateral‑free borrowing.
Take advantage of subsidies and incentives—RoDTEP, Interest Equalisation, Duty Drawback, etc.
Confirmed orders and documents (L/Cs) are your strongest assets for finance access.

🎯 Final Thoughts

My journey showed me that export finance and collateral-free lending make exporting accessible—even with zero upfront capital. With the right combination of an order/L/C, finance instruments, and government schemes, you can export without money in hand.

💼 Want to Export Too?

Register under Udyam to instantly unlock collateral-free benefits bankofbaroda.in+10bajajfinserv.in+10timesofindia.indiatimes.com+10 federalbank.co.in en.wikipedia.org+9icicibank.com+9bajajfinserv.in+9 unionbankofindia.co.in+4en.wikipedia.org+4en.wikipedia.org+4 bajajfinserv.in+7credlix.com+7eximguide.in+7 bankofbaroda.in en.wikipedia.org dgftguru.com+3en.wikipedia.org+3economictimes.indiatimes.com+3.
Approach banks offering pre‑shipment & post‑shipment finance like Bank of Baroda, ICICI, Axis, Union Bank, etc.
Use CGTMSE / CGSS / MSME Credit Card for collateral-free access.
Claim subsidies via RoDTEP, Interest Equalisation, or Duty Drawback.
Consider new government options like export factoring and credit insurance economictimes.indiatimes.com.

With these, your path to exporting is both realistic and achievable without investment. If you’d like help crafting a finance action plan or exploring specific bank processes, I’d be happy to assist!

tabrez25061977@gmail.com