Import Bill Advance
-The best choice of the short-term finance for the importer
WHAT—— What is import bill advance?
· Import bill advance is a kind of short-term finance offered by the bank to the importer according to his demand upon receiving the bills under the letter of credit and the import collection items;
· Based on the fundamental settlement methods, import bill advance can be classified into import collection bill advance and the import bill advance under the letter of credit; and based on the currency variety, it can be classified into foreign currency bill advance and RMB bill advance.
WHY——Why choose import bill advance?
· Reduce the capital occupied——Applying import bill advance on issuing a letter of credit and/or import collection, which fully utilizes the bank credit to import goods and sell it domestically, the importer could complete the trade and gain investment profits at the same time without any occupation of his own capital;
· Grasp the market opportunity—— When the importer could not make payments and get the bills accordingly, by using the import bill purchase, he could get the title documents, pick up the goods, resell the goods and grasp the market as a result.
· Optimize the capital management——If the importer encounters a better investment opportunity at the time of paying at maturity, and the prospective earning of the investment is higher than the interest cost of the trade finance, by using the import bill purchase, he could gain the investment profits without influencing the resale of imported goods, achieving the maximum of the capital efficiency.
WHEN——When to use import bill advance?
· When the importer could not make payments owing to the short of work capital, and also, the import goods market is booming, the import bill advance will be introduced.
· When there are other investment opportunities, and also, the prospective earning rate of the investment is higher than the interest rate of bill advance, the import bill advance will be introduced.
HOW——How to handle the import bill purchase?
· The Operation flow
· Points for Attention：
1. The client is required to bring forward the written application for the import bill advance to the issuing bank or the authorized collection bank;
2. The client is required to maintain the credit line or have the single credit extension approved by the financing bank;
3. The client is required to sign the formal finance agreement with the bank and determine the amount, term, rate, maturity, and etc.;
4. Pay attention to the market interest rate of RMB and the paying currency at all time, and choose the currency with the lowest cost for bill advance;
5. The import bill advance is a kind of special financing, which can only be used to carry out the responsibility of payment under trade items;
6. The financing period is always matched with the durance of resale of imported goods, and the received payment is the main source to pay off of the bill advance.
ADVANTAGES——Advantages of Bank of China
· Predominant prestige —— 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;
· Vigorous strategy —— All-out exertion to extend the strategy of developing intermediate businesses and trade financing products.
· Rich products —— Provide import bill advance under L/C and import bill advance under collection, and take the lead to Renminbi import bill advance, which grant us rich business experiences;
· Indent capital —— Bank of China, with the strongest foreign exchange power and a continually enhanced RenMinBi capital power, offer import bill advance for the clients.
· long 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;
· Preferential price —— Provide the most beneficial financing plan as per the interest rate on the market, and help the clients lower their financial expense and evade the interest rate risk to the largest extent.