Product Name

Export Invoice Discounting (EID)

Product Description

A type of short-term loan provided to the seller / exporter on a with recourse basis, for the purpose of financing sales of Goods and/or Services which have been shipped or delivered to the buyer under open account trading.

Product Function

Short-term financing requirement of the sellers / exporters under open account trading.

Product Features and Benefits

  1. Acceleration of capital turn overs. The seller / exporter can receive fund in advance before receiving payment from the Buyer by requesting EID loan to Bank of China (Hong Kong) Limited Jakarta Branch (referred as “BOC”).
  2. Increase competitive advantage. EID can provide more flexibility to the Seller / Exporter in providing extended payment terms to their Buyer, without disrupting their cash flow.
  3. Simpler documents requirement and procedure. Compared to other financing solutions under documentary trade, EID requires simpler supporting documents (i.e. invoice and delivery evidence).

Product Risk

The Customer (Seller/Exporter) may subject to fines and/or penalties for late payment of obligation to BOC in case the payment from Buyer not sighted on loan maturity date and BOC unable to perform recourse from the Customer.

Applicable customers

  1. Seller / Exporter whose sales of Goods and/or Services have been shipped or delivered to the buyer under open account trading.
  2. Seller / Exporter who have limited working capital and need to accelerate turnover rate of account receivables.
  3. Seller / Exporter who owns all rights and interest to its account receivables and capable to ensure punctual payment received from their buyers.


  1. Seller/Exporter sign the financing agreement with BOC to create credit facility for EID.
  2. Seller/Exporter sends goods and/or services and trade documents to the Buyer, including the payment instruction to affect the payment to Seller/Exporter's designated account in BOC.
  3. Seller/Exporter submits EID Application Form with supporting documents to the BOC (i.e. invoice and delivery evidence).
  4. After reviewing the EID loan request, BOC will process the drawdown to Seller/Exporter account.
  5. On maturity date, Buyer will send the payment to Seller/Exporter's account with BOC. BOC will perform loan repayment from the sales proceed received from the Buyer. In case sales proceed not sighted on maturity date, BOC will perform recourse to settle the loan from any of Seller/Exporter's account with BOC.
  6. In case payment received outside Seller/Exporter's account with BOC, BOC will require Seller/Exporter to submit the payment evidence from the Buyer.


Click here to know more about EID product.