Negotiation under import L/C

Product descriptions

Under the import L/C, the Bank provides short-term financing for import payment advanced on behalf of the importer when the consistent documents and bills are received.

Product functions

The product is used to meet the short-term financing requirements of the importer under the import L/C.

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;

Interest Rate

The financing interest rate shall be executed according to the interest rate authorized by 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 exporter 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 consistent with the L/C issued by the Bank.

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 principal and interest of the negotiation.

Reminders

1. The applicant shall submit a written application for import bill advances to the issuing 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.