“Our Trade knowledge and support will give you the confidence to grow beyond borders”
Our network and in-depth local and global experience makes us a reliable partner for your business. Our Trade Finance specialists know the challenges you’ll be facing, and will personally take the time to understand exactly how your business works. Our Financial Market specialists will also be on standby to assist you with foreign exchange advice and risk management. Trade Finance solutions we offer include (but not limited to):
- Bonds, Guarantees, Indemnities
- Standby Letters of Credit
- Import and Export Letters of Credit
- Documentary Collections
- Pre and Post Shipment Financing
- Trade Receivables Financing
Import & Export Letters of Credit (LCs)
- LCs are considered the safest and most convenient means of financing trade related transactions across borders.
- A Letter of Credit is a method of payment where the importer or buyer’s bank conditionally guarantees payment to the exporter or sellers bank, provided the exporter presents documents in compliance with the agreed upon terms and conditions.
- For Import Letters of Credit, China Commercial Bank guarantees payment on your behalf as the buyer, which gives the exporter reassurance that they will receive payment for the goods.
- For Export Letters of Credit, China Commercial Bank assists you as the seller with the sales process by checking the workability of the letter of credit and highlighting any potential issues. ALL Letters of Credit issued by China Commercial Bank are irrevocable and cannot be cancelled or varied without the consent of all parties involved.
- A Documentary Collection is the collection of a sum of money due from a buyer to a bank against delivery of certain documents.
- China Commercial Bank will thus act as a trustee and intermediary between exporter and importer, presents documents – by order of the exporter -which are proof of the actual delivery of a product or service rendered, and in exchange receives payment of the amount owed or obtains acceptance of a bill of exchange.
Pre and Post Shipment Financing
Are you facing a cash flow deficit for your importations?
- This type of financing permits specific financing of trade related transactions before and/or after shipping.
- It can be combined with traditional documentary transactions and/or supply chain events based on a purchase order or on an invoice basis.
Trade Receivables Financing
- Trade Receivables are generated from the sale of goods or services to another company
- We shall empower you company through financing these Trade Receivables in order to increase day-to-day cash-flow, improve its ability to fulfill further orders and meet the daily operating costs of the business.
- We offer trade receivables financing products and services in the form of Invoice discounting to provide you with unique financing opportunities.
Bonds, Guarantees & Indemnities
- These products will enable you to provide your buyer with a financial commitment to supply goods or services as agreed under a contract.
- These products will enable you to demonstrate your financial credibility and underpin your ability to meet contractual obligations.
Our wide range of Bond and Guarantees can support you through the entire life-cycle of any contract.
- Facilities available include: Tender Guarantee(Bid Bond), Advance Payment Guarantee, Performance Guarantee, Retention Guarantee, Customs Bounds and Standby letters of Credit(SBLC).