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Import Bill Advance


 

Introduction

It is a kind of short-term financing that Bank of China makes advance payment on behalf of importer with valid certifications and commercial bills under import L/C or inward collection.

Functions

The product is used to meet the short-term financing requirements of importers under import L/C or inward collection. It is classified into import L/C bill advance and import collection bill advance according to the settlement method; foreign currency import bill advance and RMB import bill advance based on negotiation currency types; self-owned funds advance payment and overseas affiliated bank advance payment (import bill advance by overseas institution) according to the advance payment source.

Features

1. Reduction of capital tied up. Import and resell merchandise with bank funds and make profits without occupying working capital;

2. Grasp market opportunities. The product can assist importers in obtaining document of title to goods, picking up goods and reselling in the case that payment for goods could not be made immediately;

3. Enhancement of bargaining ability. It can help importers in enhancing their bargaining ability when dealing with exporters by converting the payment at usance into payment at sight, or shortening the duration of forward payment;

4. Less financial expense. Customer can choose funding currency type on the basis of interest rates of different currencies in order to save financial expense.

Interest Rate

Financing interest rate shall be in accordance with the interest rate of trade finance business with authorization of Bank of China.

Target Customers

1. Importers who encounter temporary difficulties in capital turnover, thus can not effect documents against payment timely;

2. Importers get a new investment opportunity before making payment, and the anticipated yield is higher than the import bill advance 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.

Process

1. Bank of China shall check and ratify the importer's credit line upon importer's application.

2. The importer submits import bill advance application to Bank of China.

3. Bank of China makes advance payment for the importer and transfers bills to the importer.

4. Importer makes payment to Bank of China for repayment of import bill advance when due.

Kind Reminder

1. The importer is required to submit a written application for import bill advance to issuing bank or designated collecting bank;

2. The importer shall have an approved credit line in negotiating bank, or have applied for credit extension for specific business;

3. The importer signs with the bank a formal agreement on import bill advance, ascertaining the amount, term, interest rate, date of payment and so on;

4. As focusing on the market interest rates of RMB and remittance currency, the importer can select a currency type for import bill advance at lowest cost;

5. Import bill advance is a special financing tool, simply used to fulfill the foreign payment duty under special trade terms;

6. Generally, term of import bill advance matches with the reselling period of the imported commodity, with the sales income as the main source of repayment.

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