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Export Bill Purchase

2021-04-30

Introduction

Bill purchase refers to the service that Bank of China (Central and Eastern Europe) Limited Bucharest Branch discounts bank draft under clean collection and other settlement transaction without trade documents in order to offer financing service to customers.

Functions

The product is used to meet the short-term financing requirement for exporter under clean collection.

Features

1.Improvement of liquidity. The product can convert forward receivables into cash on demand so as to accelerate capital turnover and relieve the pressure of finance.

2.Simplification of financing process.

Target Customers

1.Customers lack liquidity who want to develop business relying on fast capital turnover.

2.Customers who come across temporary difficulties in capital turnover before proceeds collected under clean collection.

3.Customers get a new investment opportunity by financing under clean collection, and the anticipated yield is higher than discount rate.

Interest Rates

Financing interest rate shall be in accordance with the interest rate of trade finance business applied by of Bank of China (Central and Eastern Europe) Limited Bucharest Branch.

Application Qualifications

I.Basic qualifications

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

2.The settlement account opened with Bank of China (Central and Eastern Europe) Limited Bucharest Branch;

II.Others

1.Customers have demand draft for payment issued by other bank;

2.Occupation of paying bank's credit line

Process

1.Customers submit to Bank of China (Central and Eastern Europe) Limited Bucharest Branch the bills and applications for relevant business;

2.Bank of China (Central and Eastern Europe) Limited Bucharest Branch shall check the documents, then process payment to customer and retain rights of recourse;

3.Bank of China (Central and Eastern Europe) Limited Bucharest Branch claims for payment by sending out the bills to the overseas paying bank;

4.The overseas bank makes payment to Bank of China (Central and Eastern Europe) Limited Bucharest Branch when due, with which Bank of China (Central and Eastern Europe) Limited Bucharest Branch repays the discount loan.

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