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Corporate Information
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Outwards Bill Purchase
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Outwards Bill Purchase is a kind of short-term export finance. While your company (beneficiary of the letter of the credit) submit the documents under the letter of credit to our bank for negotiation, our bank (negotiation bank), after checking the full set of documents as a collateral and confirming they are compliant, will discount the bill amount to you and charge you the discount interest and other bank commissions. We then will mail the documents to the issuing bank for covering of the payment and meanwhile retain our right for recourse on you. - Advantages
(1) This kind of finance is closely bound with letter of credit. Export enterprises could speed up its capital turnover and expand export volume through export negotiation.
(2) With the fully compliant documents as pledge, this is the most simple and easy accessible way of finance under letter of credit. - Subject of the Loan
This kind of finance is oriented for foreign trade companies, industrial trade companies or export-import companies with proprietary trading business, which have high proportion of export business and strict requirement for capital turnover speed. - Amount, Tenor, Currency and Interest Rate
(1) Export L/C negotiation amount is the amount your company applied for negotiation deducted by all the estimated negotiation interest and bank commissions.
(2) The tenor of export negotiation starts from the date of negotiation by the bank and ends by the date the bank receives payment from the issuing bank. Export negotiation under sight letter of credit shall not exceed 21 days principally. For usance letter of credit the tenor shall not exceed five working days after the acceptance date by the issuing bank.
(3) The negotiation currency should be the original currency of the draft under letter of credit. Usually it is US Dollar, Japanese Yen, Euro, British Pounds and so on.
(4) The interest rate for export negotiation shall be determined according to the situation on international financial markets, the funding costs of our bank and creditworthiness of the issuing bank. | | | | |
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