Introduction
"Export Quan Yi Da" is a powerful, convenient and practical integrated trade finance solution created by Bank of China, aiming to help export enterprises to deal with various difficulties and challenges in the trade activities.
Functions
This is a set of solution integrating various traditional and emerging trade finance products, special services and foreign exchange trade financial derivative products, and modifying and combining relevant products and services based on exporter's specific needs in order to maximize the exporter's interest.
Features
1. Comprehensive Solutions
Facing trade settlement and financing products with various characteristics, you may find it difficult to choose and do not know how to combine them to obtain the best benefits. It order to effectively tackle the problem for you, "Export Quan Yi Da" further expands the range of trade finance services based on the original single product, striving for a comprehensive solution for you. If you ask for Bank of China's help in the initial stage of your trade, we will better use the advantages and characteristics of "Export Quan Yi Da" through a comprehensive solution to meet your needs, thus making you sit back and relax.
2. Flexible Product Adaptation and Combination
Based on the changes of specific factors such as trade background, market conditions and your demands, "Export Quan Yi Da" not only provides various modified products and portfolios for your choices according to diverse settlement methods, payment terms and trade process, but also provides custom solutions for your individual needs in terms of accelerating capital turnover, reducing financing costs, preventing various risks and optimizing financial statements.
3. Specialist Services of Trade Finance
As structured solutions of trade integrated services, "Export Quan Yi Da" needs a strong team of specialists providing technical and service support. The trade finance specialists cultivated by Bank of China boast both deep expertise and rich work experience. Through the combined action and discussion between various branches, Bank of China is able to fully exert the overall advantages of specialist services to create high-end service quality for you.
Target Customers
The product can meet the exporters' overall needs such as easing the difficulty of capital turnover, avoiding risks, reducing accounts receivable, perfecting financial statements and enhancing credibility.
Charges
Differential pricing according to portfolio and customer conditions.
Process
Personalized solutions according to the needs of customers and markets.
Case
Company A got a big order worth USD 500 million regarding constructing a large power plant in a Southeast Asian country, but it faced many difficulties:
1. The owner of power plant asked Company A to build the project with its own funds first due to the lack of funds and the high cost of local financing, and the owner suggested to repay the funds in a five-year deferred payment way;
2. The credit rating of the country's banks is poor;
3. Though more than ten years of construction experience in this country, it was the first time for Company A to handle such a large-scale power plant project, and the risks associated were hard to predict;
4. Limited by its own asset scale, Company A was unable to obtain loans necessary for the project in China.
Based on the information above, Bank of China designed solution for Company A as follows:
1. Try to obtain some advances for Company A through bank guarantee;
2. Try to achieve deferred payment under the L/C, so as to replace commercial credit with bank credit, and obtain a variety of trade finance by means of L/C.
Afterwards, the specialists of Bank of China effectively implemented the solution by accompanying Company A's staff to the country twice, participating in the negotiations among Company A, the owner and the local bank;
1. The local bank opened an L/C with five-year deferred payment terms, and a foreign-funded bank joined as confirming bank;
2. The Company A took out different types of insurance such as export credit insurance, business insurance, completed operations insurance for the power plant with an aim to spread and transfer risks;
3. In view of Company A short of bank credit line, Bank of China opened advance payment guarantee and performance guarantee through exclusively-operated special funds for guarantee risk, so that Company A could receive part of the project funds to quickly launch the project;
4. After receiving the L/C, Bank of China provided packing loan for Company A;
5. After receiving the L/C, Bank of China processed bill of exchange for Company A to repay packing loan;
6. Upon receipt of acceptance from the issuing bank/confirming bank, Bank of China provided forfaiting service for Company A, which it bought out the long-term accounts receivable of the project for returning the bill of exchange.
Through the solution "Export Quan Yi Da" provided by Bank of China, the problem of big order of USD 500 million facing the Company A was readily solved:
1. Company A obtained valuable start-up capital through the advance payment guarantee;
2. The occupation of the bank credit line was decreased and the scale of financing was expanded by using financial products such as packing loan, outward bill and forfaiting;
3. The financial costs were effectively reduced and the business profits were enhanced by making use of different interest rates of financial products;
4. Spreading and controlling risks to the utmost extent through the flexible use of financial instruments.
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