There are different types of credit while financing foreign trade. They are cash credit and overdraft. Both will help exporters and importers apply for cash whenever needed as long the credit lines are open. In my personal opinion, they are just another kind of borrowing, and the difference is that it is short-term funding with interest being charged depending on the amount and utilization period.
The loan limit exists during the time frame from the original effective date to the sixtieth day after the operations commence.
60 days after the operations commence, the amount left along with the excess thereof which is outstanding as of the sixtieth day (this excess will be reduced by the amount repaid on the working capital loan).