Forfaiting (without recourse purchase of bills) means the kind of export finance our bank offers your company (exporter) by purchasing bills under the export receivable which your company settled through our bank without recourse. The bills under export receivable are usually usance draft accepted by the importer's bank or bank notes or other kinds of debt certificate, such as telegraphic message for acceptance of the bills under letter of credit.

Advantages
Your company could improve your market competitiveness and access high risk market without giving much consideration to the deferred payment method of the importer;
Your company could enjoy bills discount without recourse and transfer the credit risk, exchange risk you might face with;
Your company could improve your liquidity situation and convert payment on credit into cash without sacrificing the items for accounts receivable, bank loans or contingent liability on your balance-sheet.
Your company could bring forward your schedule for verification and cancellation procedure of export foreign exchange income as well as export tax refund;
Forfaiting has stronger adaptation in comparison to export insurance or export credit. It could enable you to include the domestic or foreign costs and commissions related with the export into the contract.

Prices
We will offer prices according to the import country or area, the payment ort of the account receivable, payment tenor, amount, currency, the creditworthiness of the acceptance or guarantee bank and the category of the goods. Besides, we will also make reference to the market interest rate and interest rate of foreign currency loan and negotiate the rate with your company.

Procedure
After filling the application form for forfaiting business, your company should submit the bill or telegraphic message for acceptance to us for our verification; After passing though the verification, you should sign the forfaiting contract with our bank and transfer the title of the bill or acceptance message to our bank;
We will remit the net discounted amount after deduction of discount interest and other bank commissions to your bank account in the original currency or in RMB. Meanwhile we will provide you with the form for verification and cancellation of export foreign exchange income.