Can the export receivables under O/A and collection be guaranteed? Do you worry about the lack of working capital because of long account period? To satisfy these two needs, our bank may offer a new product solution to guarantee the safety of receivables and offer loan financing: the finance against collections under insurance cover. 

Product Description

The exporter gets financing from the bank in proportion to the value of the goods sold after shipping the goods in transactions settled by documentary L/C, documentary collection or O/A. It must purchase short-term export credit insurance, and transfer entitlement to damages to the bank.

Services

On the condition that you purchase short-term export credit insurance and transfer the claim to the bank,

  1. WCB may offer loans under O/A, D/A, D/P and L/C;
  2. The loans amount up to 80% of export bills;
  3. The currency of loans is RMB and foreign currencies, and the interest rate of foreign currency is lower than the working capital loans in foreign currency at the same time;
  4. The repayment term is determined by the applicable payment term plus a rational period of business days.

Product Advantages

  1. Avoid the credit risks concerning the collection of export proceeds in foreign exchange and political risks. China Export & Credit Insurance Corporation undertakes the credit risk of the importer and the political risk in the region where the importer is based. You only need to fulfill the trade contract and you will receive the guarantee for the collection of export proceeds in foreign exchange.
  2. Accelerate capital circulation. The bank may offer loans for you and you can collect the payment immediately and accelerate the circulation of working capital.
  3. Increase trade opportunities. You may offer the more preferential deferred payment conditions to persuade the importer to accept O/A and D/A, which may improve your competitiveness, strengthen your ability in price negotiation, increase your trade opportunities and expand your market shares.

CCB’s Advantages

  1. WCB has a mature international settlement and credit management system, which ensures convenient, fast and standardized services.
  2. The quota management makes the procedure for single transaction easy and simple.
  3. The extensive network of agent banks ensures the smooth collection of export proceeds in foreign exchange.

Eligibility/Procedures

  1. You need to purchase short-term export credit insurance from China Export & Credit Insurance Corporation, sign the Claim Transfer Agreement with China Export & Credit Insurance Corporation and CCB and transfer the claim to CCB.
  2. You need offer the following documents: the original of export credit insurance policy, guarantee slip statement, loan application, export contract, all export bills of documents, the original of the approval for buyers’ credit limit and the notice on the acceptance of short-term export credit insurance.
  3. WCB disburses loans to you.
  4. The collected export proceeds in foreign exchange are used to repay the loan.

For further information, please call our customer service hotline 95533 or go to our outlets.

International Financing

As the exporting company, do you want to obtain an advantageous position in exporting tender and increase your international competitiveness? Do you want to receive foreign currency more in a faster and safer manner and accelerate capital circulation? Do you still worry about the lack of capital on export projects due to insufficient credit limit offered by bank?

When you meet with such problems in processing exploring the overseas market, you may consider the export credit offered by CCB.

Supported by the government, the domestic financial organizations may offer preferential loans for our exporters, foreign importers and banks from importing countries. Currently China offers the export credit insurance for such preferential loans.

Types of services

The major types of export credit including buyer’s credit for export and seller’s credit for export.

The buyer’s credit for export means that in the trade of large-sized machines and whole set of equipments, the bank may offer the export credit support to foreign importer or the banks of the importer for the purchase of equipments.

seller’s credit for export means that in the trade of large-sized machines and whole set of equipments, the bank may offer the export credit support to the exporter so that the exporter may sell the equipment in the form of deferred collection of payment.

 

Application Requirements

Eligibility for Applying for Buyer’s Credit for Export:

The amount of the trade contract shall not be lower than USD 4 million.

The localization rates of whole set of equipment and ordinary mechanical and electrical products shall not be lower than 70% and the localization rates of ships shall not be lower than 50%.

The importers may make sight payments with convertible foreign bank-notes. Generally, the proportion shall not be lower than 15% of the contract amount. For ship transactions, the proportion shall not be lower than 20% of the contract amount before the ship is delivered.

The trade contract must follow the laws and rules of both importing and exporting countries and governments, obtain the approval from both governments, and obtain the documents of agreement from the foreign exchange authorities of importing country for the remittance of all principals, interests and costs of the loan (applicable for countries that regulate the foreign exchange).

The trade contract should follow the rules of China Export ＆ Credit Insurance Corporation.

Eligibilities for Applying for Seller’s Credit for Export:

The operational, managerial and financial status of the client is in good conditions. The client should have independent rights of disposal over the assets, have the ability to fulfill the export contract and open an account in CCB.

The client may achieve good economic benefits in export projects. The cost of currency conversion is reasonable and all supporting conditions are fulfilled.

The client must offer the repayment guarantee acceptable to the bank.

The amount of the trade contract shall not be lower than USD 500 thousand.

The localization rates of whole set of equipment and ordinary mechanical and electrical products shall not be lower than 70% and the localization rates of ships shall not be lower than 50%.

The importers may make sight payments with convertible foreign bank-notes. Generally, the proportion shall not be lower than 15% of the contract amount. For ship transactions, the proportion shall not be lower than 20% of the contract amount before the ship is delivered.

The trade contract must follow the laws and rules of both importing and exporting countries and governments and obtain the approval from both governments,

The client need to obtain the export credit insurance offered by China Export ＆ Credit Insurance Corporation.　

Currency and term

The loan can be extended in RMB loan and foreign currency. The term shall not exceed 10 years (including the period of construction and grace period) and the term of ship financing shall not exceed 15 years.

Interest rate

The interest rate for RMB loan is set according to the rules of WCB. The interest rate for foreign exchange loan is negotiated by the lender and the borrower based on the interest rate level of the OECD.