About the product

Without recourse, the Bank purchases the unexpired creditor's rights arising from the transaction of goods, services or assets of the exporter, so as to provide capital financing to the exporter.

Product features

1. Provides trade financing without recourse, so that customers can enjoy the final financing convenience.

2. The L/C forfaiting business accepted by the Bank does not need to occupy the credit line of the customer.

3. Reduce accounts receivable of the exporter, increase cash flow and improve financial statements.

4. The exporter can settle the foreign exchange account in advance to avoid exchange rate risk.

Application

Export enterprises who have insufficient bank credit line or need to accelerate the turnover of accounts receivable and improve financial statements.

Rate

No handling fee is charged. The financing interest rate is subject to the domestic and foreign currency trade financing interest rate of the Bank.

Handling process

1. The customer signs a general contract on forfaiting business with the Bank.

2. The exporter submits the documents under usance letter of credit or collection to the Bank.

3. The Bank receives the acceptance/commitment/guarantee payment from the bank of the importer.

4. The exporter applies to the Bank for financing and accepts the quotation of the Bank.

5. After check and approval, the Bank buys out the creditor's rights and pays the net financing amount to the exporter.

6. The banks of the importer pays on the due date, and the Bank receives the payment and repays the buyout money.