Issuing of L/C with Credit Limits

Product descriptions

Issuing of L/C with credit limits refers to the service where Fudian Bank issues an import L/C without collecting the full deposit from the customers.

Product functions

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

Product features

Reduce the capital occupation and speed up the capital turnover, so as to improve the efficiency of fund use and increase the efficiency of fund use.

Applicable customers

The importer has insufficient working capital or other investment opportunities, and wishes to be exempted from paying the issuing deposit in part or in whole.

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 exporter is qualified for import and export operations;

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

Handling process

1. At the request of the importer, the Bank will verify and approve the credit line according to its solvency, performance record and guarantee conditions. The balance of the credit line is controlled and can be recycled. The importer can be exempted from paying part or whole of L/C deposit within the credit line. If the importer fails to obtain the credit line in advance, the method of single credit audit may be carried out;

2. The Bank accepts the application for opening an L/C by the importer, and takes up credit line (or single credit) to open an L/C externally;

3. After receiving the L/C documents submitted by the exporter, the Bank will deduct the importer’s deposit to pay and release the relevant credit line.