International Trade Finance

The Issuing of Letter of Credit without Full Margin is a type of trade finance service where ABC issues letters of credit without margin or with reduced margin at the request of customers. more 》

The Package Loan is a short-term loan granted by ABC to the exporter who presents the supply contract and the L/C issued by a foreign bank in favor of the exporter before submission of shipping documents. more 》

The Export Bill Discount is a kind of financing where customers sell the drafts under a usance L/C accepted by the issuing bank or documentary collection drafts with "Per Aval" by a bank to ABC prior to the maturity of such drafts while ABC pays customers the amount of the face value of the bills minus the discount charges and related fees. Export Bill Discount is different from forfaiting that the discount bank reserves the right of recourse. more 》

The Export Bill Purchase is a kind of short-term financing where customers sell the full set of export documents to ABC which will in turn pay customers the face value minus the interest as well as any charges incurred during the date of purchase to the predicted date of receiving payment. more 》

The Import Bill Advance is a kind of short-term financing granted by ABC to the importer for payment under the import L/C, import bill under collection or remittance provided that you have submitted the relevant documents. more 》

The Bill of Lading Endorsement is a kind of financing where part of the original bills of lading entitled to ABC under the L/C are sent directly to customers and such bills of lading are presented to ABC for endorsement if the documents under the L/C have not been received while the goods have arrived at the port of destination. more 》

The Forfaiting is a method of export trade finance, by which ABC itself, or on another's behalf, purchases without recourse the forward draft accepted by the issuing bank or the committed receivables based on real trade. more 》

The Per Aval is a form of guarantee made by a third party (usually a bank) on the credit standing and solvency of the importer; this happens when the exporter is in doubt of the creditability of the importer for international trade to be settled by D/A or T/T. In this case, an endorsement with the words "PER AVAL" is stamped or written directly onto the accepted drafts by the guarantee bank, and is signed by authorized signatories of the guarantee bank, which represents an irrevocable obligation of the bank as a guarantor. more 》

The International Trade Purchase Order Financing (hereinafter "PO Financing") is a short-term financing by which the exporter applies with ABC in order to prepare, produce, and ship the goods for export under the export contract/purchase order (PO) provided that the payment is to be made by remittance or documentary collection. more 》

The International Factoring is a comprehensive financial instrument that combines cash flow management and credit risk management in cross-border trade. It includes (a) financing granted to the exporter, (b) receivables management, (c) receivables collection, and (d) the buyer's credit guarantee. more 》

The Export Credit Insurance Financing ("ECIF") is a short-term trade financing provided by ABC to the exporter by which customers transfer the insurance beneficiary ownership to ABC after they have arranged the export credit insurance for the goods or services. ECIF can be classified as ECIF bill purchase or ECIF receivables purchase. more 》

The Export Documents Pledged Loan is granted by ABC for short-term working capital use, upon the request of customers and with their pledge of commercial documents and shipping documents (the full set of documents providing evidence of the title to property must be included), provided that the settlement for export is through remittance. more 》

The Export Commercial Invoice Financing is a type of short-term trade finance where customers sell the export receivables under the export commercial invoice to ABC; it is done for a certain percentage of the invoice value, provided that customers have shipped the goods or rendered the services in accordance with relevant contract on credit terms and are to be paid by remittance. more 》

The Export Buyer's Credit is the medium or long term financing facility granted by ABC backed by China Export & Credit Insurance Corporation (SinoSure) to the importer or the importer's bank, in support of the export of capital goods and services in China such as electromechanical products, complete plants, and international project contracting. more 》

The Trade Risk Participation refers to the negotiating bank/confirming bank under L/C, forfaiter, or the beneficiary bank under L/G, in order to reduce the risks they undertake, invite one or more banks to participate in the capital and/or credit risks of the issuing bank/acceptance bank, or counter guarantee bank/guarantee bank. more 》

The Purchase Order Financing is a short-term financing where the exporter applies to ABC in order to prepare, produce, and ship the products for export, under the export contract/purchase order (PO), provided that the payment is to be made by remittance or documentary collection. PO financing can also be called "package loan" under the remittance or documentary collection. more 》

The Per Aval under Import is a form of guarantee made by ABC on the credit standing and solvency of the importer; this happens when the exporter is in doubt of the creditability of the importer for international trade to be settled by D/A or T/T. In this case, ABC endorses the words "PER AVAL" and its name onto the accepted draft, which represents an irrevocable obligation of the bank as a guarantor. more 》