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     -  Electric Commercial Draft Discounting (Buy-out)
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     -  Discounting of Electronic Commercial Draft by Interest Agreed
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  Home Page > Corporate Banking >Bill Business >Electric Commercial Draft Discounting >Electronic Commercial Draft Discounting (Redemption)
Electronic Commercial Draft Discounting (Redemption)
 

I. Description
Electronic commercial draft discounting (redemption) is a trading act, in which the redeeming party (the discount applicant) sells its legally held undue commercial drafts via online banking with discount interest to the ICBC Bills Discounting Department and related outlets of ICBC, which undertake that the redeeming party is entitled to redeem these commercial drafts under the prescribed conditions, and on the redemption date, the ICBC Bills Discounting Department and related outlets of ICBC, upon receipt of the payment in full, returns the exact same number of commercial drafts to the redeeming party.

II. Target Customers
High-quality corporate customers with good credit standing, standardized business management and settling frequently with commercial drafts.

III. Features and Advantages
i. Electronic commercial draft discounting (redemption) is designed to meet the short-term fund shortage of high-quality customers in their fund flow, so that the corporate customers can withdraw funds at any time, and enhance the efficiency of capital utilization;
ii. In this business type, the rights attached to the commercial drafts do not transfer, and the enterprise, after redeeming the commercial drafts, can collect the bill payment by itself, by which extra interest beyond the short-term financing needs is avoided, and the financing costs are minimized;
iii. It enables the customer to control the financing deadline by itself so as to minimize idle funds;;
iv. It can shorten the transit time of commercial drafts and funds, reduce transaction costs, and enhance payment efficiency.
v. Easy procedures and quick availability of funds highly conform to enterprises' demands for rapid financing.

IV. Documents Required
i. Agreement on Electronic Commercial Draft Discounting (Redemption) signed between the parties;
ii. Refer to Electronic Commercial Draft Discounting (Buy-out) for further details.

Note: The information provided on this page is for reference only. Concrete business shall be subject to the announcement and provisions of the local outlet.


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