Can the export receivables under O/A and collection be guaranteed? Do you worry about the lack of working capital because of long account period? To satisfy these two needs, our bank may offer a new product solution to guarantee the safety of receivables and offer loan financing: the finance against collections under insurance cover.
I. Product Description
The exporter gets financing from the bank in proportion to the value of the goods sold after shipping the goods in transactions settled by documentary L/C, documentary collection or O/A. It must purchase short-term export credit insurance, and transfer entitlement to damages to the bank.
On the condition that you purchase short-term export credit insurance and transfer the claim to the bank,
2. CCB may offer loans under O/A, D/A, D/P and L/C;
3. The loans amount up to 80% of export bills;
4. The currency of loans is RMB and foreign currencies, and the interest rate of foreign currency is lower than the working capital loans in foreign currency at the same time;
5. The repayment term is determined by the applicable payment term plus a rational period of business days.
III. Product Advantages
1. Avoid the credit risks concerning the collection of export proceeds in foreign exchange and political risks. China Export & Credit Insurance Corporation undertakes the credit risk of the importer and the political risk in the region where the importer is based. You only need to fulfill the trade contract and you will receive the guarantee for the collection of export proceeds in foreign exchange.
2. Accelerate capital circulation. The bank may offer loans for you and you can collect the payment immediately and accelerate the circulation of working capital.
3. Increase trade opportunities. You may offer the more preferential deferred payment conditions to persuade the importer to accept O/A and D/A, which may improve your competitiveness, strengthen your ability in price negotiation, increase your trade opportunities and expand your market shares.
IV. CCB’s Advantages
1. CCB has a mature international settlement and credit management system, which ensures convenient, fast and standardized services.
2. The quota management makes the procedure for single transaction easy and simple.
3. The extensive network of agent banks ensures the smooth collection of export proceeds in foreign exchange.
1. You need to purchase short-term export credit insurance from China Export & Credit Insurance Corporation, sign the Claim Transfer Agreement with China Export & Credit Insurance Corporation and CCB and transfer the claim to CCB.
2. You need offer the following documents: the original of export credit insurance policy, guarantee slip statement, loan application, export contract, all export bills of documents, the original of the approval for buyers’ credit limit and the notice on the acceptance of short-term export credit insurance.
3. CCB disburses loans to you.
4. The collected export proceeds in foreign exchange are used to repay the loan.
For further information, please call our customer service hotline 95533 or go to our outlets.