Export bill purchase

Product descriptions

The export bill purchase means that the Bank provides the short-term financing to the exporter based on the documents which are submitted by the export as required by L/C or the contract, after the exporter delivers the goods. If the issuing bank or the collecting payer refuses to pay or fails to pay at the maturity, the Bank has the right of recourse against the exporter.

Product functions

The product is used to meet the short-term financing requirements of the exporter under L/C or collection.

Product features

1. Speed up capital turnover. The importer can get repayment before the he pays for the goods, thus speeding up the capital turnover.

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

3. Improve cash flow. It can increase the current cash flow and improve the financial situation accordingly.

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

Applicable interest rate

The financing interest rate shall be executed in accordance with the interest rate regulation of the Bank for trade financing business.

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 delivery and before receiving payment;

3. The exporter encounters new investment opportunities after delivery and before collection, and the expected rate of return is higher than the interest rate of the negotiation.

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 applicant is qualified for import and export operations.

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

Business flow

1. The exporter signs the financing agreement with the Bank.

2. The exporter submits export documents and application for bill purchase to the Bank.

3. After verifying the documents, the Bank will transfer the bill purchase payment net of interest expenses before depositing into the exporter's account.

4. The Bank sends the documents to a foreign bank (issuing bank or designated bank or collecting bank under the L/C) for reimbursement.

5. After receiving the documents, the foreign bank will present them to the L/C applicant or the collection payer.

6. The foreign bank pays the Bank by the due date, and the Bank will use it to return the payment of the bill purchase, and the balance will be deposited into the exporter's account.

Reminders

1. You should sign a formal export bill purchase contract with the Bank;

2. Submit an application for formal export bill purchase to the Bank (usually an advising bank or a designated bank);

3. The applicant for bill purchase under the L/C shall be the beneficiary of the L/C, and the applicant for the bill purchase under collection shall be the exporter;

4. The L/C restricting other banks from doing the negotiation shall not be qualified for export bill purchase;

5. When the export bill purchase under L/C is applied, the export documents in line with documents shall be presented where possible;

6. If you wish to finance through export bill purchase, please make sure the following circumstances will not happen:

(1) The transport documents are not documents of title;

(2) A full set of documents of title has not been presented;

(3) The L/C is transferred;

(4) The L/C contains soft clauses.

(5) There are substantial discrepancies in the documents.