Domestic factoring

Service Overview

The domestic factoring means that our bank and the seller sign the factoring agreement, whereby the seller transfers to our bank the present or future account receivables produced from the domestic trading goods sales/service contract signed with the buyer, and our bank provides the seller with such comprehensive financing services as trade financing, account receivables management, overdue receivables and guarantee for bad debts.


1.        Helps the supplier (seller) to recoup the funds in time and prevents insufficient cash flow caused by the account sales;

2.        Saves the payment receipt costs and reduces the risk of bad debt;

3.        Enhances the product competitiveness, gets more orders, expands sales and increases profits;

4.        Improves the financial status of the enterprise and increases the liquidity of the assets.


1.        The seller applies for the factoring limit to our bank. Our bank verifies the transaction records, operation conditions, credit status and quality of the account receivables of both the buyer and seller and then defines a highest credit limit;

2.        After verification, the seller and our bank sign the Agreement on Factoring with Recourse or the Agreement on Factoring without Recourse. In case of the factoring without recourse, both the buyer and the seller shall separately sign the Three-party Agreement on Alienation of Account Receivables with our bank;

3.        After the account checking with the buyer and seller is completed, the seller will transfer all the accounts receivable of a particular buyer to CGB.

4.        After notifying the buyer on credit transfer of accounts receivable, CGB will release the loan according to certain percentage of the net account receivables.

5.        The received payment of account receivables shall be withdrawn to the supervision account opened in CGB for the repayment of financing exposure.