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Commercial Invoice Discounting

Product Name

Commercial Invoice Discounting

Description

Commercial Invoice Discounting services are provided by Bank of China Limited Macau Branch. Commercial invoice discounting means an agreement whereby the seller assigns his existing or future accounts receivable to Bank of China for the purpose of financing and services like collection of accounts receivable and sales administration.

Features

1. Acceleration of capital turnover. Obtaining finance before the buyer pays for the goods, thus speeding up capital turnover;

2. Avoidance of exchange rate risk. Obtaining financing in advance through discount to avoid adverse changes in foreign exchange rate in the forward market;

3. Financing with recourse to the seller. Once the buyer fails to pay at maturity, Bank of China may exercise the recourse to the seller.

Target Customers

1.The seller encounters capital turnover problems under credit sales;

2.Hope to avoid exchange rate risk.

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