Introduction
Issuing of L/C with Credit Line refers to the business that Bank of China issues import L/C for customers without collection of margin in full amount.
Functions
The product is used to meet the short-term financing requirement for importer.
Features
Reduction of funds tied up and acceleration of fund turnover therefore lifting of the usage efficiency of funds and increasing of benefits from funds usage.
Charges
Handling fees for opening L/C
Target Customers
Importers, who are lack of sufficient circulation funds or get other investment opportunities, wish to be free from providing issuing margin in portion or in full.
Application Qualifications
1. The applicant shall be approved and registered by law, and holding business license that has passed the annual inspection or other valid certifications which are sufficient to prove the legitimacy and scope of its operation;
2. Having a loan card;
3. The account opening permit to open the settlement account in Bank of China;
4. The import and export operation qualification;
5. The creditline in Bank of China.
Process
1. Bank of China, upon the request of the applicant, checks and ratifies the credit line in accordance with its debt paying ability, performance of credit, and conditions of guarantee. The creditline is controlled in balance with permission to recycling use, in which impoter is free of margin in portion or in all; Single credit extension approval shall be adopted if importer fails to obtain credit line beforehand;
2. Bank of China shall issue L/C by taking up credit line or obtaining single transaction credit extension approval , upon importer's application for opening L/C;
3. Upon receipt of documents of L/C submitted by exporters, Bank of China shall examine strictly and then draw from importer's deposit to make payment and return the creditline.
|
