Name
Term credit
Introduction
Term credit refers to batch payment business regularly launched towards the designated collecting bank by the paying bank, which is entrusted by the payer in accordance with the agreement they signed before.
Features
Through establishing corresponding payment and collection business connections, the paying bank launches automatic processing of the agency payment service by the collecting bank's system regularly, so that the payer can pay various sums of money without human intervention or assistance (such as wage payment, benefit fees, insurance premium, pension.)
Scope of Application
Term credit shall be adopted when corporate customers transacting periodical batch payment business in China.
Application Qualifications
Before transacting term credit business, the paying bank and the payer must sign a credit agreement.
Process
The payer is required to submit paper payment instruction, term credit business documents and paper collection list to the opening bank of the payer for transaction of payment business.
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