Negotiation of domestic letter of credit is a kind of short-term trade finance. Your company (the beneficiary of a domestic letter of credit) applies for negotiation of the documents you submitted to our bank under the letter of credit. Our bank, after checking the documents and confirming they are compliant, will pay the bill amount to your company with recourse and charge you negotiation fee and other bank commissions.

Subjects and Conditions for Negotiation of Domestic Letter of Credit

Subject:
Your company is an independent legal entity. If your company uses negotiation letter of credit as settlement method of your trade business, you could apply to our bank for negotiation with documents under the letter of credit.

Loan Conditions: 
If your company needs to apply to our bank for negotiation of domestic letter of credit, you should meet the following requirements:   (1) Your company is registered under approval of industrial and commercial administrative department. You have the qualification of enterprise legal entity, business license after annual inspection and permission for production and business operation.   (2) Your company maintains RMB settlement account with our bank and has good credit record.   (3) Your company has complete financial and accounting system. You will report your financial statements to our bank timely and receive our inspection and verification of your business operation and financial status. The negotiated fund should be used for reasonable liquidity demand.

Application Procedure
If your company wants to apply for negotiation of domestic letter of credit, you should submit the following documentation to our related business office:   
(1) A copy of the business license of enterprise legal entity after annual inspection;  
(2) The authorization letter of the authorized person and the sample of its signature;   
(3) The latest financial statements of the company;   
(4) Other documents and materials required by our bank   Your company should also fill in the application form for letter of credit negotiation, sign it with authorized signature and chops it. Please submit this form to us together with the documents and the original copy of letter of credit.   
Our bank will conduct the negotiation after receiving, checking of the application form and related documents and confirming they are correct.

Negotiation Rate and Other Commissions
Negotiation rate makes reference to the draft discount rate. The negotiation commission will be charge at 0.1% of negotiation amount.