I. Description The Bank, at request of the L/C beneficiary (seller), issues loans to help the latter procure, produce and ship goods under the domestic L/C.
II. Target Customers The seller faces working capital strains, while the buyer doesn’t agree to pay advances for the goods but agrees to issue L/C.
III. Features and Advantages Meet short-term financing demand of the buyer during the process of preparing and shipping goods under the domestic L/C.
IV. 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 opened a basic deposit account or a general deposit account with the Bank; iii. Outstanding loans at banks are free of overdue payment, debit interest or advances; iv. Good product quality and service, great performing capacity, and excellent performance records; v. L/C issued meets the rules and regulations of the Bank; and vi. Meeting other requirements of the Bank.
V. Handling Procedures i. The seller submits an application for packing loan to the Bank, along with the trade contract, original copy of L/C and other relevant materials; ii. Through investigation and examination, the Bank signs financing agreement with the seller, and grants loans to it pursuant to relevant regulations; iii. The seller submits documents under the L/C to the Bank after using packing loan to complete procurement, production and shipping of goods; iv. The Bank mails documents to the L/C issuer to claim for reimbursement; v. The L/C issuer reimburses the Bank on maturity, and the Bank uses the reimbursement to repay the packing loan.
Note: Information on the page is for reference only. Please refer to announcements and regulations of local outlets for specific business.