Financing Methods Of Import And Export Trade

The import bill refers to the issuing bank's receipt of the letter of credit and the accuracy of the bill. It is the first time that the issuing bank signs the import negotiation agreement with the applicant and the trust receipt submitted by the applicant.

The applicant will collect the principal and interest on the bill and return it to the international trade outlet elite network.

In a sense, it is a flexible alternative for the issuing bank to grant the applicant an option to convert a long-term letter of credit into a sight letter of credit plus an import bill.

Way of communication.

However, because some banks conceal the advance money in the name of imported bills, their business development is restricted by knowledge.

In fact, for banks, whether it is compared with general liquidity loans or compared with long-term letters of credit, import bills that are equivalent to special loans and have the ownership of goods by banks are actually much safer and more profitable.

For foreign trade enterprises, the import bill is:

The import collection bill refers to the collection of receipts received by the exporter through the collection bank, and the importer's import and export collection agreement signed by the importer on the basis of the full set of collection documents sent by the exporter through the collection bank, which is first imported and paid separately by the importer's bill of lading, and the goods returned after the sale are returned to the importer.

For banks or foreign trade enterprises, the advantages of import collection bills are generally the same as those of import bills.

But the risk of the bank itself is far more than that of the import bill.

Because the import bill is based on the letter of credit business with the primary payment responsibility of the bank. If the agreement is identical and the document is unanimous, the issuing bank must perform the obligation of external payment even if the applicant does not pay.

And interest two factors, import bill does not bring more risks to the issuing bank.

Import collection is a commercial credit, and no matter whether the importer pays or not, the collecting agent is not responsible.

However, if importers continue to make import collection bills, importers will undoubtedly pfer their business credit to exporters, thereby increasing the risk of collecting banks.

As a collecting bank, we should check the importer's creditworthiness, business status, and the quality of the pledge / guarantee for the purpose of checking and using it, so as to expand the business and guard against it.

Organic combination.

The so-called overdraft within the limit refers to the bank in accordance with the customer's credit standing and quality (pledge) / guarantee situation, for the customer in his bank account to check an overdraft limit, allowing the customer according to the demand for funds in the limit overdraft, and can use normal business sales revenue automatically reduce overdraft balance.

The deposit and loan combination of domestic banks is overdraft.

International trade.

If an overdraft within a limit, such as a customer needs to remit a sum of money to a foreign country in accordance with a trade contract after receiving the goods, it will not have to apply for a loan to the bank two weeks or a week ahead of time without any money or money in the account, and only when the relevant remittance procedures are completed, the cheque can be remitted at the time of remittance.

But at present, domestic banks seldom use this kind of technology.

The main reason is that it has actually reduced the profitability of banks.

In the long run, with the intensification of competition in China's service industry, the reduction of bank profitability is an inevitable trend.

The so-called "import substitution" means that the issuing bank, in accordance with the financing agreement signed with foreign banks (mostly its overseas branches), signs the "letter of credit agreement under the import credit agreement" with the applicant before opening the letter of credit, and sends the bill to the unit on the basis of the trust receipt submitted by the applicant, and cable the foreign bank to pay the bill.

The applicant pays the principal and interest on the day of payment.

The false forward letter of credit is issued by the issuing bank, which stipulates that the draft will be forward, but the issuing / payment will be made at sight, and the discount fee will be borne by the applicant.

Compared with the import bill, the above two financing methods are the same for importers, and the procedures are similar. They are signed by the issuing bank and the applicant before signing the contract. After the receipt, the applicant can exchange the documents with the "trust receipt" to pick up the goods and return the principal and interest at the agreed time.

The following points are different: different sources of funds, types of letters of credit, different interest rates, and foreign trade knowledge.

The risks of the import and payment of fake and forward letter of credit financing to the issuing bank are three aspects: the credit status of the applicant, the quality of the credit card / guarantee, and the monitoring level of the imported goods.

If it is a comprehensive credit item, and the exporter is a more famous company in the world and the imported goods are relatively marketable goods, the risk of the issuing bank is very small and the income is very rich.

The export collection bill refers to the exporter who uses the collection settlement method to submit the documents and entrust the bank to collect money from the importer. At the same time, he requests the collection bank to advance part or all of the payment first, and then return the bank's advance payment after the collection is collected.

Export factoring refers to the way in which the exporter delivers the invoices and related documents to the exporter (bank) on behalf of the exporter when he gets the credit line of the importer's factoring, and the bank provides a way of financing that does not exceed 80% of the invoice amount in advance.

Discount under export credit is a kind of bank credit. If the bank has strong strength and good credit, it will be basically risk-free.

The question is how to handle bills of exchange for small and medium-sized banks or economically unstable areas and banks with relatively few contacts with China?

The discount under export collection is the same as commercial credit under export collection, and the risk is far greater than that under export credit.

The five items that should be noticed in the business operation are the same as those in the export collection and export factoring.

Editor: vivi