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Product Name
Rong Fu Da Post Finance
Product Description
Bank of China, upon the request of overseas corresponding bank, makes payment under documentary L/C or documentary collection at maturity date in order to render a short-term financing to corresponding bank.
Product Functions
Make spot payments to exporter through meeting corresponding bank's needs for short-term financing under import L/C or inward collection.
Product Features
The corresponding bank can get financing at lower cost under Rong Fu Da post finance.
Eligible Applicants
1. Exporter wishes to get spot payments, however, importer and its bank prefer to make forward payments and get financing.
2. The financing cost of the importer's country or region is higher than that of China.
Application Requirements
1. Corresponding bank shall be granted credit line for financial institution by Bank of China with a sound credit status, and have signed the agreement on Rong Fu Da Post Finance business with head office;
2. Exporter shall act as the beneficiary, present the documents (under L/C) or grant Bank of China as the remitting bank (under collection business);
3. Exporter shall satisfy the following conditions:
(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 the qualification to engage in import and export trade;
(3) The applicant shall have sound contractual capability, and a good business record with Bank of China.
Application Procedures
1. Bank of China shall examine strictly the documents based on international practice(UCP) and policy and procedures (formulated by the head office) after exporter has presented the documents;
2. Bank of China sends the documents to the corresponding bank for their examination and ratification. Then the corresponding bank will send payment requests via tested telex and submit application for Rong Fu Da. Post Finance;
3. Bank of China approves the payment terms after examination. Upon acquiring full credit line to the corresponding bank, Bank of China makes payment at the maturity date on bank request;
4. After payment, Bank of China will send an agency payment telex on the following working day to the corresponding bank and present the special vouchers on the verification and cancellation of export collections for exporter. Our bank will declare the balance of payments abroad.
5. At the maturity date of financing, the corresponding bank shall take initiative to repay the principals, interests and expenses based on the payment procedure instructed by Bank of China.
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