About the product
Special loans in local and foreign currencies that the Bank issues to the beneficiary (exporter) of the letter of credit for the purchase, production and shipment of goods under the letter of credit upon receipt of the latter’s application.
Product features
1. Expand trade opportunities. When the exporter is short of funds and cannot obtain the payment terms of advance payment, the product can help the exporter to carry out business smoothly and seize trade opportunities.
2. Reduce the pressure of funds. The product can relieve the occupation of the exporter's funds in the stocking stages such as production and procurement before shipment of export goods, thus easing the pressure of liquidity.
Application
The exporter is short of liquidity, while the importer does not agree to pay in advance, but agrees to settlement by letter of credit.
Rate
No handling fee is charged. The financing interest rate is subject to the Bank's domestic and foreign currency trade financing interest rate.
Handling process
1. The exporter signs a financing agreement with the Bank, submits the packaged loan application, trade contract, original letter of credit and related materials to the Bank, and signs a financing agreement with the Bank.
2. After check and verification, the Bank deposits the packaged loan into the exporter's account.
3. The exporter submits the documents under the letter of credit to the Bank after completing purchase, production and shipment with the packaged loan.
4. The Bank sends the documents to the issuing bank or the nominated bank for remittance.
5. The exporter pays off the packaged loan through the follow-up trade financing or remittance under letter of credit.
