INTERNATIONAL BUSINESS

 Introduction:

Forfeiting is also called package buying instrument,it is discount without right of recourse after acceptance for the bill of exchange under L/C after sight by the accepting bank.

Feature:

i.The bank shall buy out receivable without right of recourse which enables the customer to get receivable beforehand;

ii.It occupies no credit of customers,which could acquire financing even if they dont have credit in our bank;

iii.It reduces receivables and improve cash flow while bank debt wasnt increased,which achieve the aim to optimize financial statement;

iv.As SAFE regulated,customer could acquire export rebate beforehand under forfeiting which actually saves financial costs.

Service object:

It is applicable for export corporate customers which present in our bank and settle accounts under L/C after sight.

Business process:

i.Customers shall sign Agreement on Forfeiting which is long-term effective;

ii.Customers shall present Application for Forfeiting and Assignment of debt,etc;

iii.Customers stock up and make shipment,then present the documents to our bank after receiving the L/C,our bank shall send them off to the opening bank and conduct the financing with the customer after having received message of acceptance and having passed the examination.