Export Finance
1. Packing Loan
- A special loan offered by BOC to the exporter who has received qualified letter of credit. It shall be used for procurement, production and shipment of the goods, so as to support the exporter to implement the contract and effect delivery as scheduled;
- Packing loan is a pre-loading short-term finance, which enables the exporter to purchase, prepare the material, produce and trade without difficulty even the self-owned capital is not sufficient.
2. Purchase of export documents under L/Cs or collections on at sight basis
- BOC offers you post-shipment finance facilities by purchasing your documents under L/C or D/P at sight basis, to assist you improve cash flow. If your documents are an L/C complying ones, you don’t need to have facilities or even an account with BOC.
3. Discount drafts under usance L/Cs or collections (D/A) with recourse
- Instead of financing under L/C or D/P at sight basis, BOC can also discount draft against the issuing bank’s acceptance under a usance L/C or against the confirmation of payment from the collecting bank of a D/A transaction. This will assist you to accelerate the capital circulation before the importer effects payment.
Advantages of Bank of China
With over thousands of offices and correspondent banks in countries and areas around the world, BOC is able to provide flexible and up to 1 year trade finance in most major currencies.
With over thousands of offices and correspondent banks in countries and areas around the world, BOC is able to provide flexible and up to 1 year trade finance in most major currencies.
4. Discount drafts under L/Cs without recourse—Forfaiting
- Bank of China, as the Forfaiter, purchases without recourse from the exporter the receivables at a discount by paying cash. Currently BOC buys the receivables under usance L/Cs after receiving acceptance or confirmation from the issuing bank.
- 100 percent financing-Payment is without recourse and will not occupy exporter’s credit line;
- Improve cash flow-Receivables become current cash inflow and it is beneficial to the exporter to improve financial status and liquidation ability so as to heighten further the fund raising capability;
- Save administration cost- By using Forfaiting, the exporter will spare from the management of the receivables. The relative costs, as a result, will be reduced greatly;
- Evade various risks- Fofaiting business enables the exporter to transfer various risks resulted from deferred payment, such as interest-rate risk, currency risk, bank credit risk and political risk;
- Realize price transfer-The exporter can also transfer the relevant financing cost into the sale price.
- In accordance with international convention, BOC reserve the right to claim the financing fund with recourse in the following circumstance——the exporter is suspected of being involved in fraud trading.
Advantages of Bank of China
- Technical Strength: By virtue of our worldwide correspondent banks network, BOC has a strong appetite to take risks of thousands of banks from almost all countries and areas over the world. The funding period is flexible from less than 1 year to 3-5 years, or even longer.
- People Strength: BOC has a qualified, motivated and professional team with rich experience in Forfaiting business accompanied with centralized management and processing system, committing to provide quality services and competent price terms to you——our valuable customers.
5. Export Factoring
- You can assign all agreed receivables to BOC (Export Factor). We will work together with overseas FCI correspondent (Import Factor) to offer you a complete financial package that combines working capital financing, credit risk protection, accounts receivable bookkeeping and collection services.
- Our factoring service provides the following benefits to you:
o Increase sales volume in foreign markets by offering competitive terms of ²payment;
o Protection against credit losses on foreign customers;
o Accelerated cash flow through faster collections;
o Lower costs than the aggregate charges for L/C transactions;
o Liquidity to boost working capital;
o Enhanced borrowing potential and an opportunity to make use of supplier discounts.
Advantages of Bank of China
Bank of China Ltd. Is the first bank to offer international factoring service in China. As a member of Factor Chains International (FCI), now we rank as top 10 of export factoring turnover within the over 1200 members. BOC has reached contracts with more than 70 well-known factors in over 30 countries and has kept good cooperation relationship with them. Our qualified staff are looking forward to work with you and provide you tailor made service.
Bank of China Ltd. Is the first bank to offer international factoring service in China. As a member of Factor Chains International (FCI), now we rank as top 10 of export factoring turnover within the over 1200 members. BOC has reached contracts with more than 70 well-known factors in over 30 countries and has kept good cooperation relationship with them. Our qualified staff are looking forward to work with you and provide you tailor made service.