Clean collection

Product descriptions

Clean collection refers to the collection business of financial papers without any commercial documents, handled by Fudian Bank and entrusted by the customer.

Product functions

The product is used to meet the demands of international trade settlement, and it can be divided into two methods: Document against Payment (D/P) and Document against Acceptance (D/A).

Product features

1. Low cost. Bank fees for clean collection are relatively low.

2. Safe and secure. It is relatively risky for the beneficiary to directly mail a clean bill to the payer and request payment. Such ricks can be avoided by prompting the payer to pay though the bank, it is a relatively safe way to collect the money.

3. The service is convenient. The time for collection can be greatly shortened if the remitting bank signs the “Cash Letter” agreement with the paying bank/collecting bank.

Applicable customers

1. Small amount payment under trade and non-trade items.

2. The beneficiary can also handle collection services if he holds value papers such as foreign currency banknotes (including worn coin), checks, promissory notes, money orders, foreign bonds, certificates of deposit, etc. that can not be exchanged in China.

3. Transactions that cannot or are inconvenient to provide commercial documents between the beneficiary and the payer, such as sending samples, software and other high-tech product transactions, seasonal commodity transactions, and intangible trade such as service and technology transfer.

Application 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 beneficiary of the clean collection under the trade item must have the import-export operation right.

Business flow

1. The beneficiary submits the collection bill to the Bank.

2. The Bank will send the collection bill to the foreign collecting bank for entrusted collection of payment.

3. The foreign collecting bank presents the bill to the payer, and the payer pays according to the face amount and deadline.

4. The foreign collecting bank pays the collection funds to the Bank, and the Bank makes the payment to the beneficiary.

Reminders

1. Clean collection is applicable to the collection of bills and valuable certificates under various trade and non-trade items;

2. The quoted currency of the collection bill should generally be convertible currency;

3. It is difficult to handle the collection of the bills whose restricted circulation area is marked on the surface;

4. The bills that have been endorsed and transferred are liable to have risks of fraud such as forgery and alteration, and you should pay attention to such risks;

5. Fraud is easy to occur among the unfamiliar bills with extremely large amounts or with doubtful creditworthiness of the issuing bank;

6. Fraud is easy to occur among the large-value bills used for investment, loan, mortgage and other purposes.

7. It is hard to handle the collection of overdue bills.