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Singapore Branch sufficiently relied on local as bulk stock commerce centre advantageous position, intensively develop commerce financial service, continuously innovate and improve, passionately providing clients with diversified advanced financial services.
Forfaiting& Risk Participation
1. Forfaiting
To purchaseoutstanding claims resulting from goods, services or asset transactions without recourse. The outstanding claims have usually been accepted/undertaken/valised to make payment by financial institutions. This product is designed to be financing without recourse, creditor's right need to be transferred and obligor needs to confirm usance payment term, non-controversial. It is divided into primary market and secondary market.
- Purchase accounts receivable without recourse to meet customers' need of accounts receivable financing-.
- Mitigate customers' risks by transferring obligor's credit risk, exchange rate risk, and interest rate risk
- Does not occupy the customer's credit line.
- Increase business opportunities by expanding into high-risk countries.
2. Risk Participation
Risk participation refers to a bank participating in a trade related or bankers guarantee transaction, undertaking the underlying credit risk of the obligor through a Grantor Bank. The bank receives revenue by undertaking the credit risk.Under Financial Institution Risk Participation, obligor refers to the financial institution whom undertakes the payment or guarantee responsibility of the underlying transaction. Under Corporate Risk Participation, obligor refers to the corporate customer whom undertakes the payment or guarantee responsibility of the underlying transaction.
- Save time to explore cooperative bank by integrating banking resource.
Import Trade Settlement
1. RMB-denominated LC Issuance
Upon the request of an importer, Bank of China, Singapore branch issues a RMB-denominated payment undertaking to an overseas exporter, promising to fulfill payment obligations when documents in compliance to all terms and conditions as listed in the LC are presented.
- RMB-denominated LC issuance offers importers another flexibility of choice in trade settlement currencies. This adds to increase importers' bargaining power in trade transactions and further widens the use of the accumulated pool of RMB funds.
2. RMB-denominated Inward Collection
Bank of China, Singapore Branch acts on instructions from foreign Remitting Banks, to present for payment, commercial documents denominated in RMB to importers either on payment terms which includes documents against payment (D/P) or documents against acceptance (D/A).
- Assist your international trade settlement in order to dispense goods in time
Export Trade Settlement
1. RMB-denominated LC Advising
Bank of China, Singapore Branch acts on behalf of foreign LC issuing banks to advise RMB-denominated LC or amendments to exporters.
2. Examination of Documents and negotiation under LC
Bank of China, Singapore Branch offers an integrated package of services to exporters which include the checking, dispatching and reimbursement under their RMB denominated export LC.
- This service of checking and negotiation offers exporters settlements of their trade which are denominated in RMB.
3. RMB Export Documentary Collection
Bank of China, Singapore Branch, upon the request of the exporter, presents RMB denominated export commercial documents and drafts, to a foreign Collecting bank, entrusting them to collect payments from importers which may be on payment terms including documents against payments (D/P) or documents against acceptances(D/A).
- This form of trade settlement has the advantage of being simple and less costly.
Import Trade Finance
1. Import Bills Advances
Bank of China, Singapore Branch provides financing in RMB against valid import commercial documents received under a RMB LC issued.
- RMB import bills advances not only satisfy the importer's financing needs under RMB LC issued, at the same time it offers to increase the importer's ability in offering a variety of trade settlement currencies to satisfy the exporter's choice and in so doing increases the importer's bargaining power.
2. Outward Remittance Advance
Bank of China, Singapore Branch provides financing in RMB against valid import commercial documents under a T/T remittance trade settlement.
- RMB import bills advances against T/T remittances not only satisfy the importer's financing needs, at the same time it offers to increase the importer's ability in offering a variety of trade settlement currencies to satisfy the exporter's choice and in so doing increases the importer's bargaining power.
Export Trade Finance
1. Export Bills Advances
Bank of China, Singapore Branch offers to finance against your export documents under RMB LC or RMB export collection documents which can shorten the process of the return of funds from export sales and improve cash turnaround time. Financing can be denominated in the LC currency, that is RMB or in another foreign currency. If financing is in a foreign currency, Bank of China, Singapore Branch offers exporters foreign exchange hedging services to mitigate foreign exchange risks.
- These services offer exporters short-term financing under RMB LC or RMB export collection, thus improving the cash turnover time and reducing the cost of funds.
2. Export Bills Discounting
Bank of China, Singapore Branch can discount or purchase against exporter's accepted documents under export LC. Without the need for a credit facility, export documents under RMB LC accepted by the LC issuing bank can be discounted or purchased. Financing can be denominated in the LC currency, that is RMB or in another foreign currency. If financing is in a foreign currency, Bank of China, Singapore Branch offers exporters foreign exchange hedging services to mitigate foreign exchange risks.
- These services offer exporters short-term financing under RMB usance letter of credit, thus improving the cash turnover time and reducing the stress on working capital.
Specialized Trade settlement and Finance products (All specialized trade settlement and finance products can be denominated in RMB.)
1. Short-Term Finance to Banks
On the basis of pre-arranged agreements signed between Bank of China, Singapore Branch and branches in China or Head Office or with mainland Chinese banks, Bank of China, Singapore Branch offers short-term financing to these banks for trade related transactions which can be under LC, collections or remittances or any other modes approved by Head Office.
- To ensure your trade settlement goes well by integrating banking resources.
2. Collaborated Trade Refinancing Import Loans
On the basis of pre-arranged agreements signed between Bank of China, Singapore Branch and our domestic branches in China or Head Office, Bank of China, Singapore Branch offers short-term financing to Chinese importers for settling import purchases.
- It helps Chinese importers widen the financing sources and reduce funding cost.
3. Collaborated Trade Refinancing Export Loans
On the basis of pre-arranged agreements signed between Bank of China, Singapore Branch and branches in China or Head Office, Bank of China, Singapore Branch offers short-term financing to Chinese exporters for their export sales.
- This product can help Chinese exporters to accelerate capital turnover and reduce funding cost.
4. Usance LC Negotiable at sight
Usance LC Negotiable at sight refers to a usance LC in which the LC stipulates that the beneficiary can request for payment at sight. The LC issuing bank can through pre-arrangement with Bank of China, Singapore branch, nominate Bank of China, Singapore Branch as the reimbursing bank. Thereafter, upon receipt of the LC issuing bank's acceptance of documents, Bank of China, Singapore Branch would reimburse the claim at sight.
- This service allows exporters to shorten the capital turnover time and reduce financing costs.
5. Collaborated Back-to-Back LC
Upon receipt of the first (master) LC issued by the importer's bank, the overseas beneficiary in Singapore can then apply to Bank of China Singapore Branch to issue another LC to the final supplier based on the same terms and conditions of the first LC. The service is most suitable for subsidiary companies of Chinese companies set-up in Singapore where based on the subsidiary's own ability, may not be able to transact.
6. Letter of Guarantee
Letters of guarantee are undertakings given by Bank of China, Singapore Branch on behalf of applicants to beneficiaries, in which the Bank undertakes payment obligations of the applicant to the beneficiaries under contracts signed between the two parties.
- Letters of Guarantees are traditional products offered by Bank of China, Singapore Branch which can be denominated in various currencies including RMB, and the types of guarantees can include both financial and non-financial guarantees.
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