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Domestic Loan Under Overseas Warranty
2017-10-26
(I) Product function
On the premise of meeting the working capital loan requirements of our Bank, the domestic enterprises shall apply for a working capital loan from our Bank due to its business turnover demands, and the overseas banks shall issue a financing letter of guarantee or stand-by letter of credit to our Bank to provide the warranty.
(II) Business characteristics
1. It belongs to the low-risk credit extension business, so the processing process is simple and efficient.
2. Facilitate domestic enterprises to quickly obtain financial integration through inter-bank credit extension;
3. The limit of financing for domestic enterprises is the owners’ rights and interests in the latest financial audit report.
(III) Applicable objects
1. Chinese and foreign-funded enterprises that need the help of overseas strength to obtain credit extension support in order to expand domestic business scale;
2. Chinese and foreign-funded enterprises that need the help of overseas banks for credit enhancement in order to reduce financing costs.
(IV) Business procedure
1. The clients (domestic enterprises) apply for the limit of the low-risk working capital loan in our Bank;
2. The overseas enterprises provide the letter of guarantee format and issuing bank information to our Bank. The two parties have established test key relationship and completed the legal review process;
3. Our Bank receives the financing letter of guarantee issued by overseas banks;
4. Our bank provides working capital loans in domestic and foreign currencies to clients (domestic enterprises);
5. The clients (domestic enterprises) pay the principal and interest on time. In case of breach of contract, our Bank will seek recourse from overseas banks.
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