Export Bill Purchase
-Export trade financing with the broadest usage
WHAT——What is export bill purchase?
· Financing of money in transit supplied by the bank with the export bill as the mortgage as required by the exporter after delivers the goods and presents the documents requested by the letter of credit or the contract.
· Export bill purchase business has the following scope: the export bill purchase under the letter of credit and the export bill purchase under the documentary collection; the foreign currency export bill purchase and RMB export bill purchase.
WHY——Why choose export bill purchase?
· Accelerate the capital circulation——The exporter can get paid in advance before the importer makes the payment, and the capital circulation is speed up;
· Simplify the financing procedure—The financing procedure of export bill purchase is simpler and more convenient than that of the working capital loans;
· Improve the cash flow— Export bill purchase can increase the present cash inflow of the exporter to improve the financial condition and strengthen the financing ability;
· Save the financial expenses— The clients can choose the financing currency in accordance to the interest rates of different currencies in Bank of China, so as to minimize the financial expenses.
WHEN— When to use export bill purchase?
· The exporter has limited current capital, and relies on rapid capital circulation to develop the business;
· The exporter encounters temporary difficulty in capital circulation after delivering goods and before getting paid;
· The exporter faces new investment chance after delivering goods and before getting paid, and the prospective income rate is surely higher than the negotiated interest rate.
HOW—How to handle export bill purchase operation?
· The Operation flow
· Points for Attention：
1. Sign the General Financing Agreement with the bank;
2. Submit the formal finance application to the bank (commonly the advising bank or the negotiated bank);
3. The applicant under the letter of credit should be the beneficiary of the letter of credit;
4. The export bill purchase under L/C restricted to other banks by negotiation will not be handled;
5. If applying the export bill purchase under the letter of credit, it would be best that documents, submitted by the exporter, are in compliance with the terms of the letter of credit ;
6. If the exporter wishes to finance through the export bill purchase, they had better avoid such conditions as follows: a. Non-negotiated transport documents; b. Failure to submit full set of negotiated bills of lading; c. Transferrable letter of credit; d. L/C with soft clauses; e. documents with essential discrepancies.
ADVANTAGES——Advantages of Bank of China
· Predominant reputation —— BOC has a long history of over 90 years and has been awarded “the Best Bank in China” by “Euromoney” for successively 8 times. With the progressively improved system of corporate governance, overall integration of operation flow, wholly-upgraded service efficiency and rich financial products, BOC has continued to advance toward its goal of becoming a leading universal international bank;
· Reform with keen determination —— Attentions has been paid to the intermediate business, especially the strategy of developing various trade finance.
· Rich products —— Capable of handling export bill purchase under L/C or collection, and accumulated rich business experience;
· Abundant capital —— Bank of China, with the strongest foreign exchange power and a continually enhanced RenMinBi capital power, provides clients robust guarantee to carry out export bill purchase service successfully.
· Preferential price —— Provide the most beneficial financing plan as per the interest rate on the market, help the clients lower the financial expense.
· Strong credit support —— Bank of China, the first bank among domestic commercial banks to implement the centralized credit management, has designed diversified and effective credit process to support financing businesses;