Export commercial invoice discounting

Product descriptions

Export commercial invoice discounting refers to that the exporter transfers the current or future accounts receivable generated under the export sales contract which is concluded with the importer (debtor) to a bank, and the bank provides trade financing, receivables collection, maintenance of the sales ledger and other services.

Product classification

It can be divided, based on the advising the debtor or not, into the following: open type discounting of export commercial invoice and concealed type of discounting of export commercial invoice.

Product features

1. Speed up capital turnover. Before the importer pays for the goods, the exporter may get the financing funds, thus speeding up the capital turnover.

2. Simplify financing procedures. Compared with the current loan, financing procedures are simple and easy.

3. Avoid the exchange rate risk. Financing is obtained in advance through discounting to avoid adverse changes in forward market exchange rate.

4. Reduce the credit threshold. For customers who have already procured the credit insurance, the Bank may relax the credit access standard and lower the credit threshold as appropriate on the basis of occupying the quota of export credit insurance company.

5. The applicant has recourse to the financing of the exporter. When the importer fails to pay on time, the Bank may exercise the right of recourse against the exporter.

Applicable interest rate

Refer to the interest rate regulations of the Bank on trade financing business.

Applicable customers

1. The exporter is confronted with of capital turnover under the export credit;

2. The exporter is under great pressure of RMB appreciation;

3. The exporter encounters a new investment opportunity after the shipment and before collection, with the expected rate of return higher than the discount rate.

Application conditions

1. The applicant has been approved and registered in accordance with the law, and has an annually legal person business license or other valid documents which can prove its business legitimacy and business scope;

2. The applicant has a loan card;

3. The applicant has an account opening license, and has opened a settlement account with the Bank;

4. The exporter is qualified for import and export operations;

5. The exporter has the relevant credit line with the Bank.

Handling process

1. At the request of the exporter, the Bank checks and approves the discount line for the exporter according to the relevant credit requirements, and signs the Agreement on Export Commercial Invoice Discounting;

2. The exporter issues the documents and submits the discounting application to the Bank;

3. After checking the authenticity of documents and trade, the Bank will handle the discounting for the exporter, and the discount amount will be remitted into the exporter's account after deduction of the interest expenses;

4. If the importer fails to make payment by the due date, the Bank or the exporter entrusted by the Bank should collect the payment. After the overdue for 30 days, the Bank will recover the discount payment from the exporter;

5. When the importer makes payment by the due date, the Bank will use the payment to return the discount, and the balance (if any) will be transferred to the exporter's account.