Product Name

Export Bill Purchase

Product Description

Export Bill Purchase is a Short-Term finance supplied by Bank of China Limited Karachi Branch with the export bill as the mortgage as required by the exporter after delivers the goods and presents the documents requested by the letter of credit or the contract.

Functions

To meet the exporter's need of short-term financing under the L/C or collection. The products are classified into non-discrepancy export bill purchase under the L/C, discrepancy export bill purchase under the L/C, D/P collection export bill purchase and D/A collection export bill purchase.

Features

1.Acceleration of capital turnover. The exporter can be paid in advance before receiving payment from importer, so that capital turnover can be speeded up.

2.Simplification of financing procedures. Financing procedures are simpler than those of working capital loan.

3.Improvement of cash flow. The financial position is improved by increasing current cash flow.

4.Less financial expenses. The customer can choose the funding currency in accordance to the interest rates of different currencies at Bank of China, so as to minimize the financial expenses.

5.Lowering of the credit extension threshold. For the documents in conformity with the L/C, the exporter can still apply for export bill purchase even without credit line in the bank.

Interest Rate

Financing interest rate is subject to the interest rate of Bank of China Limited Karachi Branch for the trade finance business.

Eligible Applicants

1.Exporters who have limited working capital and have to develop business by rapid capital turnover.

2.Exporters encounter the temporary difficulty in capital turnover during the period between goods delivery and receipt of payment.

3.Exporters discover new investment opportunities between goods delivery and receipt of payment, and the expected yield is higher than interest rate of export bill purchase.

Application Requirements

I.Basic Qualifications

1.The applicant holds the business license of enterprises legally approved, registered and annually checked and other valid certificates sufficient to prove the legitimacy and scope of its operation;

2.The qualification of import and export operation.

II.For discrepancy export bill purchase under L/C and D/P collection export bill purchase, exporters should have credit line from Bank of China Limited Karachi Branch. For export bill purchase with non-discrepancy documents under the L/C, the exporter is not restricted by the credit rating and other acceptance requirements if the occupation of credit line of financial institutions is allowed.

III.For D/A collection export bill purchase, the exporter should have a credit line at Bank of China Limited Karachi Branch.

Procedure

1.The exporter enters into a financing agreement with Bank of China Limited Karachi Branch.

2.The exporter submits export bills purchase application to Bank of China Limited Karachi Branch.

3.Upon approval of the documents, Bank of China Limited Karachi Branch effects the payment to the exporter's account.

4.Bank of China Limited Karachi Branch mails the documents to the foreign bank (the issuing bank or a designated bank under the L/C, or the collecting bank under collection) for reimbursement.

5.Upon receipt of documents, the foreign bank notifies the applicant under the L/C, or the payer under collection.

6.Foreign bank effects payment at maturity, Bank of China Limited Karachi Branch recognizes it as export bill purchase.

Gentle Reminders

1.The applicant should submit a formal application for export bill purchase to Bank of China Limited Karachi Branch (usually the advising bank or the negotiating bank).

2.The applicant under the L/C should be the beneficiary of the L/C.

3.While applying for export bill purchase under the L/C, customers shall try to submit export documents which are in compliance with the terms of the letter of credit.

4.If customers wish to get finance through export bill purchase, they shall try to avoid the followings: a. The non-negotiable transport document; b. Failure to submit a full set of negotiable bill of lading; c. L/C with soft clauses; d. Submitting documents with essential discrepancies.