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Bank Acceptance Draft Discounting

Overview

The Bank Acceptance Draft Discounting means the lawful bearer of the bank acceptance draft sells the draft to a commercial bank for an amount of funds before its maturity.

Features

Under this service, commercial drafts can be cashed quickly and conveniently with low financing costs. The products available in relation to bill discounting at ABC include direct discounting, discounting with interest payment by buyer, discounting with interest payment according to the contract, and discounting with partial recourse.

Procedures

The main procedures include reception of application, examination of bills and documents (inquiry and examination), credit review and approval, account transaction and collection of reimbursement at maturity.

The applicant shall submit the following documents:

1. Fully completed Application for Discounting of Commercial Drafts and Checklist for Discounting of Commercial Drafts affixed with the corporate seal and the personal seal of the legal representative or the authorized representative.

2. The original and copies of the annually reviewed Business License or the Legal Person Certificate, the Certificate of Organization Code and the Loan Card.

3. The original and copies of both faces of the complete bank acceptance draft which is yet to mature.

4. The originals of the authentic and lawful contracts for trade in goods and services or any other written evidences for the authenticity of such trade.

5. The original of the VAT invoice issued to the draft issuer (or the immediate previous bearer). In the case of a goods transaction exempted from VAT or prohibited from issuing VAT invoice in accordance with the Interim Regulations of the People's Republic of China on Value Added Tax, and the Provisions on the Use of Special Invoice for VAT, the VAT invoice is not available due to particular reasons; and the applicant may provide other written evidences for the authenticity of the trade under the draft.

6. The recent balance sheets and income statements.

7. The following documents should be submitted for the customers applying for draft discounting for the first time:

The balance sheet and income statement of the previous year;

The original and copy (to be retained) of the ID card of the authorized representative; and

The copy of the ID card of the legal representative and the Power of Attorney.

8. Other materials required by ABC.
Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599

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