Export Bill Discount

Product Name

Export Bill Discount

Product Description

The product of short term financing provided by the bank to the exporter, by means of buying with recourse Usance draft which is not due, accepted by the issuing bank or the confirming bank.

Product Functions

To meet the short-term financing requirement of exporters under the usance L/C

Product Features and Benefit

  1. Acceleration of capital turnover. The exporter can receive the fund in advance before receiving payment from importer by negotiating or discounting the bills, so that capital turnover can be improved;
  2. Simplification of financing procedures. Financing procedures are simpler than those of working capital loan due to undertaking payment from issuing bank for source of fund
  3. Streamline financial expenses. The customer can choose the funding currency in accordance to the interest rates of different currencies in Bank of China, so as to minimize the financial expenses.

Applicable Customers

  1. Exporters who have limited working capital and have to develop business by seamless  capital turnover;
  2. Exporters who encounter the temporary difficulty in capital turnover between receipt of acceptance/confirmation/guarantee of payment from Issuing banks and collection;
  3. Exporters discover value added opportunities between receipt of acceptance/confirmation/guarantee of payment form Issuing banks and collection, and the yield is higher than the discount rate


  1. Exporters sign the financing agreement with Bank of China, and submit the business application and export documents to Bank of China.
  2. After approving the compliance of documents, Bank of China mails them to the issuing bank or a designated bank for payment reimbursement.
  3. Upon receipt of payment acceptance confirmation, Bank of China effects the payment to the exporter.
  4. Issuing bank effects payment at maturity, which Bank of China will use it to settle the previous discount payment.