Import Invoice Financing (IIF)

Refers to a type of short-term loan provided to the Bank’s customer on a with recourse basis, for the purpose of financing purchase of Goods and/or Services (including the shipment of the Goods), in which the Supplier sends all trade documents to the Buyer directly.

Short-term financing requirement of the buyers / importers under open account trading.

1. Improves Cash Flow. Importer/buyer can use bank financing to import and sell goods, and the proceeds from the sale of goods are used to repay bank financing/loans, which can reduce the occupying of their own funds to complete the trade and earn profits by requesting IIF loan to Bank of China (Hong Kong) Limited Jakarta Branch (referred as “BOC”).
2. Lessen the Cycle of Capital Turn Over. Importer/buyer can use bank funds for financing, and repay the loan after the export payment is recovered/funds are returned, thereby improving liquidity of funds, seizing market opportunities, and maintaining good goodwill.
3. Improve Bargaining Power. At the stage of signing the sales contract, the importer/buyer can change the payment terms from usance basis to sight basis, or shorten the payment terms to improve its bargaining power over the exporter.
4. Simpler documents requirement and procedure. Compared to other financing solutions under documentary trade, IIF requires simpler supporting documents (i.e. invoice and delivery evidence) for drawdown process.

The Customer (Buyer/Importer) may subject to fines and/or penalties for late payment of obligation to BOC in case of unable to pay BOC for the loan repayment on the loan maturity date due to the lack of source of fund.

1. Buyer/ Importer who buys Goods and/or Services from the supplier and have received the documents/shipment evidence under open account trading.
2. Buyer/ Importer who has limited working capital and receives short payment terms from their supplier, which led to large cash conversion cycle.
3. Buyer/ Importer who wants to maintain relationship with their suppliers

1. The Customer submits the IIF application and the trade documents to Trade Finance Department.
2. Trade Finance Department checks customer’s credit limit, trade documents and trade documents whether already comply with the terms and conditions.
3. Trade Finance Department process the disbursement and transfer the proceeds to the supplier.
4. On maturity date, customer will repay the IIF loan.

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