I. Description The Bank provides short-term financing to buyers (borrower) in domestic transactions to help them pay amounts payable under the purchase/sales contract.
II. Target Customers Buyers that face working capital shortage due to procurement of goods from the seller under the transaction.
III. Qualifications i. Approved/registered in accordance with the law, having obtained corporate business license or other valid documents that certify the company’s business legality and business scope; ii. Having original copy of lawful and reasonable commodity transaction contract, goods procured are raw materials required in normal operation of the buyer or major merchandise of the commercial & logistics buyers; iii. The goods are mainly settled through cash-on-delivery; and advance payment is mainly applicable to the conditions that the upstream trading partner has a strong position along the industry chain or goods procured is a kind of scarce goods; and vi. Meeting other requirements of the Bank.
IV. Handling Procedures i. The buyer submits financing application, and provides documents such as business license, original of purchase/sales contract etc. to the Bank; ii. The Bank signs financing agreement with the buyer after investigating transactions between the buyer and the seller, and designates a special collection account for the buyer at the Bank; iii. The Bank provides financing to the buyer, and pays the seller according to regulations; iv. The buyer repays the Bank after getting sales revenue.
Note: Information on the page is for reference only. Please refer to announcements and regulations of local outlets for specific business