Export Factoring

Product Introduction

Export Factoring refers to various financial services provided jointly by CGB and the overseas import guarantee service institution based on receivable transfer, such as receivable collection urgence, sales account management, credit risk guarantee and receivable financing, when the exporter sells the goods to the importer by means of Sale On Account (O/A) or Document Against Acceptance (D/A).

Product Features

1.It increases the business volume. For a new or an existing customer, it provides more competitive forward payment conditions such as sale on advance and acceptance document so as to expand overseas markets and increase business volume.

2.It speeds up the capital turnover. After the receivable right is transferred, you can get the advance from CGB, speed up capital turnover, and ease your capital shortage pressure.

3.It reduces the risks of bad debt of receivable accounts. The credit risk guarantee service provides assurance for the collection of the receivable under the goods you export to a highly risky region; if a receivable dispute irrelevant overdue circumstance occurs, the guarantee service institution will press the payer for payment by means of letter notice, telephone notice or legal proceedings, and the overseas guarantee service institution will make the guarantee payment on the 90th date after the receivable due date, and the financing bank has no recourse over you.

4.It strengths the management of the sales account. It saves your financial management manpower and material resources; CGB will help you gain an insight into the receivable collection status in a timely fashion, so that you can control sales risks in a timely fashion.

5.It improves your financial statement. A loan without recourse can correspondingly reduce the number of receivables in your financial statement; you don’t have to indicate it as a bank loan, thus you can optimize your financial statement.

6.After a guarantee service loan without recourse is released, it is equivalent to a collected payment, thus you can immediately get a dedicated copy of export payment collection settlement issued by the bank, process the settlement procedure earlier, and apply for state export tax rebate earlier.

7.The collected foreign exchange payment can be immediately settled, which avoids the risks in the exchange rate.

Our Commitments

1.The amount of a factoring finance can be up to 80% of the invoice amount.

2.The guarantee service rate and loan interest rate are determined according to the degree of risks of the payer and the country where the payer lives; the lower the risks, the lower the interest rate.

3.The loan currency can be the foreign payment currency or RMB. In case of foreign currency, the payment can be settled on the same date upon your request.

4.The loan doses not occupy your bank credit line, or requires an extra guarantee provided by you.

Kind Reminders

1.After shipping, you shall submit a complete set of vouchers such as commercial invoice and transportation vouchers

2.According to the General Rules for International Factoring (GRIF), if you have a dispute related to the goods quality with your business counterpart, the approved credit guarantee line will be revoked automatically Therefore, you shall be careful when you sign an export contract with a foreign customer. You shall pay attention to the reasonableness and completeness of the clauses, especially quality clauses.