Jewellery and gemstones business has been able to achieve a global standing such that the business is well expanded and is still in a scope to be expanded further. To ensure that export and import of jewellery is well drafted, certain governmental policies have been included in the business such that the promotion of the business is well intended.
There are various finance schemes that have been drafted within the business modules and help in promoting the business. These would also include the various Export finance agencies. Such agencies help in leveraging funds for the companies that wish to export jewellery and take care of all the legal and social impacts of the business. Also the payment terms and conditions are well drafted as per the convenience and repayment capacity of the borrower. This allows the companies to repay as per their capacity and the amount that has been borrowed. Most of the Export finance agencies may be governmental but there are also private players in the market.
There are certain benefits that are accorded to finance being taken for the export. The biggest benefit is that it is valuated money that is being invested and therefore needs to be utilised with audits in place. Secondly, the amount of money that needs to be used for the export chain is not limited and the sanction is made on the proposal that the company has. This means there is no upper limit to the amount of money that can be borrowed.
Thirdly, there are also tax benefits that are awarded to the companies that wish to expand businesses beyond their international borders and most of the countries promote such companies with subsidies and tax benefits that help these companies grot further.
Export Finance For jewellery can be sought for various functions such as:
- Manufacturing where in the company seeks finance from the lending agency for improvising upon the quality and the quantity of the business that has been set up and make it ready for export
- Design and crafting: where in the company seeks to increase the machinery and automate the process of manufacturing and designing to lend homogeneity to the designs that have been made
- Increase the international business and improve upon the export links.
In all such cases, before the funding is sought for export, to evaluate the business deals and terms and conditions for export is highly essential. It has also been recommended to ascertain the various conditions that are levied upon export by various countries.
Many banks have also been ready to provide post shipment funds to the exporting companies in the domain of jewellery business to ensure the sustainability of the business till the payments come in. Jewellery imports and exports contribute heavily to the Gross National Income and GNP of the country and therefore there are various public and private schemes that are circulated around it.