Export Bill Purchase

Short-Term financing provided  by Bank of China, with the export bill as the assurance, required by the exporter after delivery of goods and provision of the documents requested by the letter of credit

To meet the exporter's need of short-term financing under the L/C or collection. The products are classified into non-discrepancy export bill purchase under the L/C, D/P and D/A collection export bill purchase.

1. Acceleration of capital turnover. The exporter can receive the fund in advance before receiving payment from importer since Bank of China-Jakata purchase the bill first, so that capital turnover can be improved up;
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. Exporter can choose the funding currency in accordance to the interest rates of different currencies at Bank of China, so as to minimize the financial expenses.

1. Exporters who have limited working capital and have to develop business by seamless capital turnover;
2. Exporters encounter the temporary obstacles in capital turnover during the period between goods delivery and receipt of payment;
3. Exporters discover value added opportunities between goods delivery and receipt of payment, and the expected yield is higher than interest rate of export bill purchase.

1. The exporter enters into a financing agreement with Bank of China;
2. The exporter submits export bills purchase application to Bank of China;
3. Upon approval of the compliance of documents, Bank of China effects the payment to the exporter's account;
4. Bank of China mails the documents to the the issuing bank or a designated bank under the L/C, or the collecting bank under collection for reimbursement;
5. Importer’s bank effects payment at maturity, Bank of China settles previous  bill purchase disbursement.