Introduction
Buyer bill advance under domestic letter of credit (L/C)，a short-term financing service, refers to that Bank of China, on request of the L/C applicant, makes payment for the payables under the L/C on behalf of the buyer upon receipt of documents under the L/C.
Features
1. The buyer encounters the temporary difficulty in capital turnover, thus can not obtain document against payment;
2. The buyer gets a new investment opportunity before making payment, and the expected rate of return is higher than the interest rate of bill advance;
3. The product can enhance the bargaining power. By turning the deferred payment into payment at sight, it shortens the period of deferred payment, helping the buyer enhance his bargaining ability.
Interest Rate
The interest rate of the buyer bill advance should be applied in the same way as the intrest rate of RMB working capital loans at the same level.
Application Qualifications
1. Customers have the corporate business license which is legally approved, registered and annually checked and other valid certifications sufficient to prove the legitimacy and scope of its operation;
2. Customers have the loan card;
3. Customers have the account opening permit and have opened the settlement account with Bank of China;
4. Customers have credit line in Bank of China.
Process
1. Upon the buyer's application, Bank of China reviews and determines the credit line or grants credit for single business;
2. The buyer submits the Application for Buyer Bill Advance under Domestic L/C or Application Contract for Buyer Bill Advance under Domestic L/C to Bank of China;
3. Bank of China makes the bill advance payment for the buyer and transfers bills to the buyer;
4. The buyer effects payment to Bank of China at maturity in order to return the bill advance payment.
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