Guangdong ICP Certificate No.05058995
粤公网安备 No.44010402002437
Financing backed by A/R pledge
Service Overview
Financing backed by A/R pledge refers to a kind of credit-granting business that a company pledges to the bank its accounts receivable right which is in accordance with the bank regulation and makes registration, and the bank provides financing.
Features
1. Through the business, the business accounts receivable is revitalized for obtaining financing.
2. The object of accounts receivable pledges is limited to the debt which has not been securitized in cash payment.
3. The account receivables may be the existing creditor’s rights or the future rights with stable expectations.
Flow
1. Our bank verifies the operation conditions, transaction records, credit status of both the buyer and the seller and the quality of the account receivables of the specific buyer;
2. After verification, our bank signs the Loan Contract and the Rights Pledge Contract with the seller, goes through the pledge procedures for the account receivables and makes registration in the publicity system of the People’s Bank of China for pledge of account receivables in a timely manner;
3. Generally, after notifying the specific buyer of the pledge of account receivables and getting the relevant return receipts, our bank shall grant the loan based on a certain proportion of the net amount of the account receivables;
4. The received payment of account receivables shall be withdrawn to the supervision account opened in CGB for the repayment of financing exposure.