Export Trade Finance

Includes Packing Loan, Export Bill Purchase and Forfeiting

Packing Loan
A special loan offered by the local bank to the exporter who has received qualified letter of credit, to be used under items of procurement, production and shipment, so as to support the exporter to implement the contract, effect delivery as scheduled. Packing loan is a pre-loading short-term financing, which enables the exporter to purchase, prepare the material, produce and trade without difficulty even the self-owned capital is not sufficient.

Export Bill Purchase
Financing of money in transit supplied by the bank with the export bill as the mortgage after the exporter delivers the goods and presents the documents requested by the letter of credit or the contract.
Export bill purchase business has the following scope: the export bill purchase under the letter of credit and the export bill purchase under the documentary collection.

Forfaiting
        Forfaiting, also called bill buy-up or bill buy-out, is a kind of trade financing that Bank of China, as the buyer-up, purchases without recourse from the exporter the accepted usance draft so as to provide finance to the exporter.