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Import Bill Advance

Name

Import Bill Advance

Introduction

Import bill advance is a kind of short-term financing in which Bank of China Brussels Branch makes advance payment on behalf of importer with valid bank bills and commercial bills submitted by importer under import L/C or inward collection.

Functions

The product aims to meet the short-term financing need of importers under import L/C or inward collection. Depending on settlement method, it can be divided into import L/C bill advance and import collection bill advance; depending on the currency of bill advance, in can be divided into foreign currency bill advance and RMB bill advance; depending on the source of funds, it can be divided into advance payment by own funds and advance payment by overseas correspondent bank (overseas payment).

Features

1. Reducing the occupation of fund. By importing and selling with bank funds, importers can conclude the trade and earn profit without investing in any fund;

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

3. Increasing price negotiation 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 expenses. The customer can choose the funding currency in accordance with the interest rates of different currencies in Bank of China, so as to minimize the financial expenses.

Charges

The interest rate for financing will be determined by Bank of China Brussels Branch based on Bank of China's rules on trade financing interest rate and charges and negotiation with the customer.

Target Customers

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

2. Importers who get a new investment opportunity with higher yield than the interest rate of bill advance before making payment.

Application Qualifications

1. The applicant shall have a corporate account in Bank of China Brussels Branch;

2. The applicants shall hold the business license legally approved, registered and annually checked as well as other valid certificates sufficient to prove the legitimacy and scope of operation;

3. The applicants shall have the qualification to engage in import and export trade;

4. The applicant shall have credit line in Bank of China Brussels Branch.

Procedure

1. Bank of China Brussels Branch checks and grants credit line for the importer at its request;

2. The importer submits import bill advance application to the Branch;

3. The Branch makes advance payment for the importer and delivers the bills to the importer;

4. The importer makes payment to the Branch upon maturity to repay the import bill advance money.

Tips

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

2. The customer shall have an approved credit line or have applied for single credit extension in the Branch;

3. The customer shall sign an formal bill advance contract with the Branch to determine the amount, term, interest rate and other clauses;

4. Import bill advance is a special financing instrument used only for fulfilling the foreign payment duty in specific trading transactions;

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

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