Introduction
Bank of China issues domestic L/C against insufficient margin from customers.
Features
Reduce capital occupation, speed up capital turnover, thus enhancing capital efficiency and increasing capital effectiveness..
Charges
Each L/C charges 1.5 ‰ of L/C issuance amount with a minimum of RMB 300. For the validity period of three months or more, 0.5‰ of L/C issuance amount will be surcharged every three months.
Target Customers
The buyers who have insufficient working capital or have other investment opportunities, hoping L/C issuing deposits are exempted in part or in full.
Application Qualifications
1.The applicant shall be approved and registered in accordance with the law, and hold a business license that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;
2. The applicant shall have a loan card;
3. The applicant shall have an account opening permit and open a settlement account with Bank of China;
4. The applicant shall have a credit line at Bank of China.
Process
1. At the buyer's request, Bank of China approves credit line or single credit extension according to its debt paying ability, performance records and security conditions;
2. The buyer submits application for issuing domestic L/C or Domestic L/C Issuance Contract, Bank of China issues the domestic L/C by using credit line upon approval;
3. Upon receipt of documents, the issuing bank makes payments after examining the documents.
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