Pre-export finance is a kind of pre-shipping finance your company (the exporter) may apply to our bank by using the valid export letter of credit issued by foreign country as proof of the genuine trade background and collateral of the finance. This kind of business is mainly used to finance the production or purchase of export products and the costs arises thereof. Pre-export finance is kind of finance closely connected with settlement of letter of credit. It is convenient for operation, therefore could effectively solve the short-term funding problem of enterprises. At the same time, due to its clear trade background, this kind of short-term finance is relatively easy to access.
Subjects and Conditions of the Loan
Subjects of the Loan If your company has the qualification of independent legal entity and import/export business license, you could apply for pre-export finance at our bank.
Conditions (1) Your company is an independent accounting unit and assumes sole responsibility for profits or losses. Your company maintains fine business style and has no record for violation of laws or regulations. (2) Your company should have the resources to offset the export losses, complete production and sales planning as well as complete financial management system. Your company has good creditworthiness. You maintain RMB or foreign currency basic deposit account or normal deposit account with our bank and also keep regular settlement transactions. (3) The valid original letter of credit on your hand is opened by foreign bank with good creditworthiness and it is irrevocable. The articles of the letter of credit must be checked and approved by our bank and the documents should be submitted to and negotiated through our bank. (4) Your company should provide our bank with the export sales contract. In case you are an export agent, you should provide us with the agency agreement, so that our bank could understand the related trade background. (5) Your company should provide our bank with your financial statements for our better understanding of your financial status. If necessary, you should provide collateral or guarantee recognized by us.
The credit line, interest rate and tenor of pre-export finance
Credit line: Maximum 80% of the L/C value;
Currency: RMB and other major convertible currencies
Interest rate: The interest rate for the same currency stipulated by the People's Bank of China will apply. The interest will be settled together with the principle of the loan.
Tenor: The tenor starts from the date the bank grants the loan and expires one month after the validity of the letter of credit. Principally the tenor should not exceed 6 months.
Subjects and Conditions of the Loan