Import Invoice Financing (IIF)
Dear Valued Corporate Customers,
We are gladly informed you that on 14 December 2022 Bank of China (Hong Kong) Limited Jakarta Branch (referred as “BOC”) have launched new Trade Financing solutions under open account trading, called “Import Invoice Financing (IIF)”.
What is 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.
What are the benefits for Customers?
- 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”).
- Lessen the Cycle of Capital Turn Over. Importer/buyers 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.
- 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.
- 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.
For further information regarding IIF, you may visit IIF page here. To apply IIF, please contact 021 5205502 or you can direct your queries to our Trade Sales team at product.sales@bankofchina.co.id
Best regards,
Bank of China Hong Kong Jakarta Branch
