I. Introduction Packing loan is used to cover the cost of goods, material, production and shipment prior to export of the goods under the L/C you received from your overseas importer. After shipment, submit the documents to ICBC for negotiation against the L/C and return the packing loan once you receive the payment of goods from overseas.
II. Features and Advantages Expand your business scale and increase cash flow through the packing loan.
III. Target Clients When your company prepares the goods, material, production and shipment against the L/C.
IV. Operation Guide To apply, submit the following to ICBC: 1. Written application; 2. Overseas sales contract and domestic purchase contract; 3. Original copy of the L/C; 4. Other documentations required by ICBC.
L/C for Packing Loan must meet the following condition: 1. Credit ratings of L/C opening bank or confirming bank comply with ICBC rules; 2. No "Soft Terms" in the L/C that your company cannot fulfill.
V. Application Conditions 1. Your company must obtain rating by ICBC with an approved credit line; 2. Packing loans are mainly in RMB for payment of goods for export. ICBC can also provide loans in foreign currency if your company needs to purchase overseas.
VI. FAQ 1. Maximum amount of Packing Loan under one L/C is up to 80% of the L/C amount.
VII. Statement Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final right of interpretation. Refer to the announcements and regulations of local branches for further details.