Import Bill Advance

Bank Of China acting on behalf of the Importer will make payments to the Exporter in relation with the import transaction

Import bill advance is a kind of short-term finance offered by the Bank of China to the importer according to his demand upon receiving the bills under the letter of credit or the import collection items.

The product is used to meet the short-term financing requirements of importers under import L/C or import collection.

1. Reduction of capital occupation. Pay Import with bank funds and make profits by selling the goods after paying debt’s obligation, without occupying customer working capital;
2. Grasp market opportunities. The product can assist importers in obtaining good’s document of title, picking up goods and reselling in the case that payment for goods could not be made immediately;
3. Enhancement of bargaining ability. It can help importers in enhancing their bargaining ability when dealing with exporters by converting the payment at Usance into payment at sight (cash basis);
4. Streamline financial expense. Customer can choose funding currency type on the basis of interest rates of different currencies in order to save financial expense.

1. Importers who encounter temporary obstacles in capital turnover, thus cannot get documents against payment timely;
2. Importers discover a value added opportunity before making payment, and the anticipated yield is higher than the import bill advance interest rate.

1. Bank of China sets up the importer's credit facility;
2. The importer submits import bill advance application to Bank of China;
3. Our bank advances the import bill payment on behalf of the importer and delivers the documents to the importer;
4. Importer makes payment to Bank of China for repayment of import bill advance when due.