Import bill advances

Product descriptions

The Bank provides short-term financing for import payment advanced on behalf of the importer under the import L/C, import collection and cash on delivery import commercial invoices, with valid certificates and commercial documents.

Product functions

It is used to meet the short-term financing needs of the importer under import L/C, import collection or cash on delivery import commercial invoice. According to the method of settlement, it is divided into import bill purchase of L/C, import bill purchase collection and import bill purchase invoice; according to the currency of bill purchase, it can be divided into foreign currency of bill purchase and RMB of bill purchase; according to the source of advanced funds, it is divided into self-owned funds for external advance and overseas correspondent bank advance payment (refinancing).

Product features

1. Reduce capital occupation. Bank funds are utilized to import goods and sell them domestically, and the trade can be accomplished for earning profits without occupying any funds of the applicant;

2. Grasp the market opportunities. Help the importer obtain the documents of title, pick up the goods and resell them promptly when it can't pay for the goods immediately, so as to seize the market opportunity;

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 importer is unable to pay the bills on time due to the temporary capital turnover difficulties;

2. The importer encounters new investment opportunities before payment, and the expected rate of return is higher than the rate of 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.

Handling process

1. The Bank approves the credit line for the importer upon application.

2. The Bank receives the documents submitted by the exporter.

3. The importer submits the application form of import bill advances to the Bank

4. The Bank advances the negotiation payment on behalf of the importer and delivers the documents to the importer.

5. The importer pays the Bank by the due date to repay the money of the negotiation.

Reminders

1. The applicant shall submit a written application for import bill advances to the issuing bank or the designated collecting bank;

2. The applicant has approved the credit line or applied for a single credit line in the negotiating bank;

3. The applicant and the negotiating bank sign a formal negotiation agreement to determine the amount, term, interest rate and repayment date;

4. Import bill advances is a kind of special financing, which can only be used to fulfill the external payment responsibility under specific trading;

5. The term of negotiation is generally matched with the period of resale of imported goods, and the proceeds from sales are taken as the main source of repayment.