Trade Finance

　　Letter of Credit (L/C) Issuance

　　A Letter of Credit is a conditional undertaking of payment on the certain amount of fund that a bank issues to the exporter (beneficiary) within a specified period of time and the submission of the specified documents under the requirements and instructions of the importer (applicant).

　　Import Finance

　　Import finance refers to the financing activity that our branch provides loans or advances to the buyer to make the external payment as the request of buyer and the provision of the relevant documents after ensuring compliance with the legal and regulatory requirements. According to the settlement method, the import finance can be classified as import finance under L/C, that under collection and that under T/T payment.

　　Forfaiting

　　Forfaiting means that our branch, as the request of the exporter, purchases his/her undue claims without recourse after the issuing bank/ acceptance bank or other nominated bank has given a commitment to pay the amount due.

　　Packing Loan

　　Packing Loan means that according to the application from the beneficiary of the Letter of Credit (L/C), our branch retains the original L/C and grants a specific loan to the beneficiary for the procurement, production and shipment of goods under the L/C before submitting the shipping documents. The proceeds from sales of goods under that L/C will be repaid for the specific loan.

　　Export Finance

　　Export finance refers to the financing activity that after delivering the goods as requested by the contract and submitting the full set of documents, our branch settles a certain ratio of the receivables under the documents with the customer, and then demands the remittance from the buyer based on the documents to repay the loan.

　　Export Invoice Financing

　　Export invoice financing refers to the short-term financing that after the sales of goods to the importer by documentary collection (either on credit or by documents against acceptance (D/A)) and transferring collection rights on export receivables to our branch, our branch grants the loan with recourse to the customer for a certain proportion of the export invoice value.

　　Reminder: To borrow or not to borrow? Borrow only if you can repay!