Packing loan

Product descriptions

A special loan granted by the Bank to the beneficiary (exporter) of L/C for the purchase, production and shipment of goods under the L/C.

Product functions

1. The product is used to meet the short-term financing requirements of the exporter for goods preparation and shipment under L/C.

2. The source of repayment is collection of export proceeds under L/C.

3. As special loans, it should be based on the clear trade background, and such loans should be subject to the closed management.

Product features

1. Expand trade opportunities. When the exporter is short of funds and unable to obtain the payment terms of advance payment, the product helps the exporter carry out business smoothly and grasp the trade opportunities.

2. Reduce capital occupation. It will not occupy exporter’s self funds during the goods preparation stages such as production and, which can relieve the pressure as a result of limited working capital.

Applicable interest rate

The financing interest rate shall be executed according to the interest rate authorized by the Bank for trade financing business.

Applicable customers

The exporter is short of working capital, while the foreign importer refuses to advance payment, but agree to open an L/C.

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.

Submittals

1. Written application;

2. Import and export sales contract and domestic purchase contract;

3. Introduction to trade conditions;

4. Original L/C and all related amendments.

Handling process

1. The exporter signs a financing agreement with the Bank, and submits a packing loan application, trade contract, original L/C and relevant materials to the Bank.

2. After the approval of the Bank, the packing loan will be transferred to the exporter's account.

3. The exporter submits the documents in line with the relevant L/C to the Bank after completing the purchase, production and shipment with the packing loan.

4. The Bank will send the documents to a foreign bank (issuing bank/designated bank) for reimbursement.

5. The foreign bank pays the Bank by the due date, and the Bank then uses the money to repay the funds of the packing loan.

Reminders

1. It is necessary to sign a formal Packing Loan Contract with the Bank;

2. According to the L/C for loan, the financing bank shall be the advising bank, and the financing bank shall be the designated bank;

3. The L/C should better not contain the "soft clause" that the exporter cannot perform;

4. The original L/C shall be kept in the financing bank after the application for packing loan is proposed;

5. Under normal circumstances, the remittance received under the L/C must be the primary repayment source of the packing loan;

6. After shipping the goods and obtaining the documents under the L/C, you shall present the documents to the bank in time.