Export Credit Insurance Financing

Product Introduction

Export Credit Insurance Financing refers to an accommodation loan in a certain proportion to the goods value, granted by CGB to an exporter, after the exporter has bought the export credit insurance from China Export Credit Insurance Company, transferred the indemnity right to the bank, and shipped the goods.

Product Features

1.It avoids payment credit risks and political risks. China Export Credit Insurance Company undertakes the credit risks of the importer and the political risks of the country or region where the importer lives; as long as you fulfill the trade contract normally, you can get the payment reception assurance.

2.It speeds up capital turnover. China Guangfa Bank provides you with the loan; you can reclaim the capital on demand, thus speeding up your current capital turnover;

3.It provides you with more trade opportunities. You can offer the importer more favorable delayed payment conditions, accept such a settlement manner as Sale On Account (O/A) or Document Against Acceptance (D/A), boost your competitive power, enhance your price negotiation ability, seek for more trade opportunities, and increase your market share.

Our Commitments

1.Dedicated examination channels; profession examination personnel; closely cooperating with China Export Credit Insurance Company to ensure smooth insurance buying and loan applying;

2.Our bank can provides documentary bills based on Sale On Account (O/A) or Document against Acceptance (D/A), Document against Payment (D/P) and L/C;

3.The loan amount is usually set according to the indemnity rate set by the credit insurance company; it can be up to 80% of the amount of the commercial invoice.

4.The loan term is comprehensively determined according to the payment term corresponding to the settlement manner plus reasonable bank working days.

Kind Reminders

1.The appropriately fulfilling of “contract obligations of both parties” is the precondition for the smooth claiming for indemnity when something goes wrong with the trade. You shall strictly fulfill the export sales contract and the insurance contract you have signed with China Export Credit Insurance Company; If the claim for indemnity is refused by the credit insurance company as a result of that you fail to fulfill the insurance contract, you will have to pay back our bank’s loan with your own money, and the use of your credit insurance loan line offered by our bank will be stopped;

2.Every received export payment under the loan must go to the account you open at our bank. You shall, in a timely fashion, notify your overseas customer to specify the invoice number or our bank’s business number in the payment postscript;

3.You shall be careful when you sign an export contract. You shall ensure the reasonableness and completeness of contract clauses, especially the payment manner, quality clauses, payment term and dispute settlement manners. When you apply for the loan, you shall provide our bank with the export contract so as to let our professionals evaluate the contract clauses for you.