Introduction
Outward remittance advance, a short-term financing service, means that with the settlement method of payment on delivery, Bank of China makes payment for the imported goods on behalf of the importer against the valid vouchers and the commercial documents under outward remittance.
Functions
The product can meet the needs of short-term financing for importers under outward remittance.
Features
1. Reduction of capital tied up
Import and resell merchandise in domestic market with bank funds to make profits without occupying working capital.
2. Grasp market opportunities
The product enables importers to take advantage of market opportunities to acquire documents of goods right, take delivery of goods and resell in the event that the importers are unable to make payment at once.
3. Improvement of the bargaining power
It can help importers enhance their bargaining ability in negotiation with exporters by converting the payable at usance to payment at sight, or reduce the duration of payable at usance.
4. Less financial costs
Customers can choose funding currency based on interest rates of different currency types in order to save financial expenses.
Interest Rate
Financing interest rate is subject to the interest rate of the trade finance business set by Bank of China.
Target Customers
1. Importers encounter temporary difficulties in capital turnover, thus can not make payment on time;
2. Importers get a new investment opportunity before making payment, and the anticipated yield is higher than the financing interest rate.
Application Qualifications
1. The business license of enterprises legally approved, registered and annually checked and other valid certifications sufficient to prove the legitimacy and scope of its operation;
2. Loan cards;
3. The account opening permit and a settlement account with Bank of China;
4. The qualification of import and export operation;
5. A credit line in Bank of China.
Process
1. Bank of China should check and ratify the importer's credit line upon application;
2. The importer submits the outward remittance advance application to Bank of China;
3. Bank of China makes payment on behalf of the importer with financing funds;
4. The importer reimburses Bank of China at maturity in order to repay the financing funds.
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