Account receivables financing under domestic credit insurance

Service Overview

The accounts receivable financing under domestic credit insurance means that the seller purchases domestic trade credit insurance from insurance company and transfers the compensation rights to the bank, and in the policy term, after the seller delivers the goods in accordance with trade contract and issues invoice within the invoice issuing period specified in the Underwriters, CGB will grant the applicant a certain amount of financing.


This not only guarantees the safe recover of supplier’s account receivable and sales expanding etc., but also makes the seller enterprises access to credit support from banks more easily through the transfer of compensation equity.


1.        The seller applies domestic trade credit insurance in the China Export & Credit Insurance Company, and applies for a credit line for the buyer.

2.        Seller puts forward the financing application, and CGB reviews the seller’s financing credit line of accounts receivable under the domestic credit insurance.

3.        CGB, the seller company, and the insurance company sign the Claim Assignment Agreement and agree to transfer equity of the insurance claims to CGB.

4.        After the seller company delivers the goods and declares to the insurance company, the credit insurance company will issue the Situation of Domestic Trade Credit Insurance Notice to CGB, and feed back the relevant information on vendor declaration and premium payment etc.

5.        Our bank goes through the procedures for granting the loan within the limit for the enterprise based on such Advice and other relevant documents;

6.        In case any possible loss occurs within the coverage of the insurance, the credit insurance company shall transfer the claim payment directly to our bank according to Claim Payment Transfer Agreement and the policy.