1. Export Single Factoring

Product Introduction

Export single factoring is a service in which the exporter transfers its accounts receivable, arising from contracts for the sales of goods, provision of services, or engineering projects with an importer, to Bank of China. BOC then provides services including financing, sales ledger management, and the collection of accounts receivable.

Product Features

Export single factoring helps exporters obtain financing before the importer's  payment, thereby improving cash flow. Additionally, the factoring financing proceeds can be settled into local currency at spot exchange rates, mitigating forward exchange rate risks.

2. Export Two-Factor Factoring

Product Introduction

Export two-factor factoring is a service in which the exporter transfers its accounts receivable, arising from contracts for sales of goods, provision of services, or engineering projects with an importer, to BOC, which in return re-transfers them to an import factor. BOC and the import factor work together to provide the exporter with services including financing, sales ledger management, the collection of accounts receivable, and bad debts protection.

Product Features

Export two-factor factoring helps exporters manage the credit risk of the importer by providing bad debts protection in case the importer fails to settle the debt upon maturity. It also helps exporters obtain financing before the importer's payment, thereby improving their cash flow.

3. Import Two-Factor Factoring

Product Introduction

Import two-factor factoring is a service in which BOC, at the request of an export factor and based on its credit risk assessment and control of the importer, provides services including the collection of accounts receivable and bad debts protection to the export factor.

Product Features

Import two-factor factoring helps the export factor manage the importer's credit risk by providing bad debts protection in case the importer fails to settle the debt upon maturity. It also helps the importer enhance its cooperative relationship with the exporter, supporting the exporter in expanding sales to the importer.

4. Factoring with Export Credit Insurance

Product Introduction

Factoring with export credit insurance is a service for export trade, in which the exporter takes out an export credit insurance policy with an insurance company approved by BOC. The exporter then transfers the corresponding accounts receivable and the rights to indemnity under the insurance policy to BOC. Based on the transferred accounts receivable and indemnity rights, BOC provides the exporter with services including financing, accounts receivable management, and collection.

Product Features

Factoring with export credit insurance helps exporters obtain financing before the importer's payment, thereby improving cash flows. It also helps exporters to manage their sales-related credit risk and country risk with the protection of credit insurance.