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Export L/C Settlement
2017-10-26
(I) Product function
Exporters receive L/C issued by overseas importers through our Bank, which will provide a series of services, including review and notice of the incoming L/C, review and processing of export documents, correspondence and telegraphic negotiation, documents sending, foreign exchange collection and receipt, etc.
(II) Business characteristics
1. Secure collection of foreign exchange. Replace commercial credit with bank credit so as to reduce trade risk;
2. Accelerated capital turnover. Exporters can obtain the payment for goods as long as the documents are consistent, which accelerates the withdrawal of capital.
3. Low-cost financing. With L/C as the settlement method, exporters can easily obtain bank financing support no matter in the preparation stage (packing loan) or the stage after delivery (bill of exchange and discount).
(III) Applicable objects
1. Production-oriented and trade-oriented enterprises with import-export operation rights;
2. Export enterprises that do not understand the credit status of the importer and wish to provide additional payment commitment through our Bank;
3. Export enterprises that need to apply for financing from our Bank.
(IV) Business procedure
1. The exporter receives the notice of an export L/C;
2. The exporter applies to our Bank for the presentation of documents for negotiation;
3. After receiving the payment from the overseas importer, our Bank will remit the payment to the clients’ account.
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