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Package Loan

Overview

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. The customer must guarantee that the loan is used for the preparation and shipment of the goods for export under the L/C. Then valid and conforming documents are submitted to ABC in accordance with L/C terms, so that ABC can dispatch documents and claim reimbursement.

Functions

1. It enables customers to take opportunities of trade in short of funds while the advance payments are not available.

2. Proprietary funds of customers are not required during the production and procurement, which releases pressure on working capital.

Procedures

1. The customer completes the Application for Export Package Loans and submits the original L/C, export contract, permit/license for export and other documents required by ABC.

2. ABC reviews the application and signs the Contract for Export Package Loans with the customer.

3. ABC is entitled to oversee the use of the loan to ensure that the funds are used for predetermined purpose only, i.e. for preparation of the products for export under the L/C.

4. After shipping the goods and obtaining the documents under L/C, the customer submits such documents to ABC for collection, and then repays the principal and interest under the Package Loan.

Tips

1. The customer must be the beneficiary of the L/C.

2. L/C expired shall not be used.

3. The original L/C must be under custody of ABC for the purpose of Package Loan.

4. L/C with the "soft clauses" shall not be used.

5. After shipping the goods and obtaining the documents under the L/C, the customer should submit such documents to ABC timely.
Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599

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