Export Settlement Financing
1. Packing loanPacking loans are a short-term financing facility provided by BOCOM against the valid original copy of a L/C issued at an overseas bank, and released to the exporter for stock inventory, material inventory, production, processing and shipping of exported goods in a sum proportional to the amount provided under the L/C.
2. Outward documentary
Outward documentary is a service by which the L/C beneficiary (applicant for export bill purchase) submits a L/C and its full set of receipts as well as pledge them to BOCOM, which, upon review of the application, will provide the applicant with short-term financing and reserve the right to demand payment from the beneficiary.
3. Forfeiting
Forfeiting refers to a trade financing mode whereby the exporter’s bank demands discounts without recourse of the bills accepted or guaranteed by the importer’s bank, thereby enabling the importer to secure the payment for goods in advance.
4. Export collection financing
Export-collection financing is a financing service provided by BOCOM that the exporter applies for, to address the short-term requirements on working capital, owing to the outstanding payment for exports that BOCOM has been entrusted by the exporter to collect from the importer.
5. Export factoring
Export factoring refers to financial services such as bad-debt guarantee, loan recall and management of sales ledgers as well as trade financing, provided by BOCOM (factoring provider), on the basis of exports’ account receivables received for the export of products and services by the mode of credit extension.
6. Export invoice financing
Export invoice financing services refer to a short-term financing facility provided by BOCOM to corporate customers, who have undertaken exports by COD or on credit, against the invoices and other export proof provided by them.