Import Settlement Financing
1. Inward documentary
Inward documentary refer to a short-term capital financing service provided under the premise that BOCOM is in control of the titles of the imported goods under the import L/C, to facilitate the applicant’s payment to external parties, at an agreed interest rate and maturity term in which the applicant is obliged to pay back the principal sum with interest to BOCOM.
2. Import collection financing
Import collection financing is a short-term financing facility provided to the applicant, based on the latter’s application in written form, by the collecting bank under documents against payment (D/P) and at the time when the bank is serving a notification of D/P, at an agreed interest rate and maturity term in which the applicant is obliged to pay back both the principal sum with interest.
3. Import outward remittance financing
Import outward remittance financing is a short-term financing facility provided by BOCOM to the applicant, based on the latter’s written application, for partial or full payment to overseas exporters of foreign imports under international trade upon the goods arrival by a remittance settlement mode of Cash on Delivery (COD) specified in the import contract, at an agreed interest rate and maturity term in which the applicant is obliged to pay back both the principal sum with interest.
4. Import factoring
Import factoring is a payment guarantee of the factored amount provided by BOCOM (import-factoring provider) to foreign exporters in order to fulfill the latter’s responsibility of collecting receivables and recalling repayment from domestic importers upon which BOCOM is being transferred of accounts receivables of domestic importers by foreign exporters.