Export discounting

Product descriptions

Export discounting refers to that Fudian Bank purchases from the exporter under the export L/C the unexpired usance bill which has been accepted by a bank, or the unexpired forward claims undertaken to be paid by a bank, or the unexpired forward claims which have been purchased under the documentary collection and have been certified to be paid by a bank. The Bank has the right of recourse against the exporter if the accepting/committing/certifying bank fails to pay at the due date.

Product functions

The products are used to meet the short-term financing requirements of the exporter under usance L/C or under collection of Documents against Acceptance (D/A).

Product features

1. Speed up capital turnover. The forward claims can be recovered at any time, which will speed up the capital turnover and relieve the pressure of capital.

2. Simplify financing procedures. Compared with the working capital loans, the financing procedure is simpler and easier.

3. Save financial expenses. The financing currency can be selected according to the interest rate of different currencies, so as to save financial expenses.

Applicable customers

1. The current capital of exporters is limited, so they rely on the rapid capital turnover to carry out business;

2. The exporter suffers temporary capital turnover difficulties after receiving acceptance/commitment/certification by any foreign bank and before receiving the payment;

3. The exporter encounters new investment opportunities after acceptance/commitment/certification by any foreign banks and before collection, and the expected rate of return is higher than the discount rate.

Application conditions

I. Basic conditions

1. The applicant has been approved and registered in accordance with the law, and has an annually verified 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 applicant is qualified for import and export operations.

II. The customer has an unexpired usance bill already accepted by a bank or unexpired forward claims committed by the bank to pay, or has unexpired forward claims certified by the bank under documentary collection.

III. The applicant occupies the credit line of financial institutions as the accepting bank/committing bank/certifying bank. If the accepting bank/committing bank/certifying bank has no relevant credit line of financial institutions in the Bank, the exporter shall apply for the same to the Bank.

Business flow

1. The exporter signs a financing agreement with the Bank and submits export documents to the Bank.

2. After checking the documents, the Bank sends them to a foreign bank (issuing bank or designated bank) for reimbursement.

3. After receiving the documents, the foreign bank accepts/commits/certifies to pay the Bank.

4. After receiving the acceptance/commitment/certification, the customer submits an application for discount business to the Bank, and the Bank then remits the discount amount net of interest expenses receivable to the exporter's account.

5. The foreign bank makes the payment to the Bank by the due date, and the Bank then uses it to return the discount amount.

Reminders

1. When the contract is signed, it is agreed with the importer that the usance acceptance L/C or Documents against Acceptance (D/A) collection should be used as the settlement method;

2. After the issuing bank, the designated bank or the certifying bank under the collection accepts the usance bill or issues the notice of acceptance, the applicant should submit a discount application to the bank;

3. Generally, banks will reject the bill discount for investment purposes by the applicant without trading background.