Packaged Loan

Product Introduction

Packing loan means that the beneficiary of the L/C applies for short-term financing with CGB with a full set of original L/C for stock export and promises to surrender the documents to CGB after export and to transfer the receivables of the L/C to CGB for returning the financing fund.

Product Features

1.Mitigating the fund pressure: With the financial support from the bank, paying the costs of stocking, processing, packaging, and transporting with only a little self-own funds so that the export can be conducted smoothly.

2.Increasing trade opportunities: Foreign importers only need to issue L/C and do not need to pay you advances, thus increasing trading opportunities and improving your bargaining power.

Our Commitments

1.The largest loan amount is 80% of the sum of L/C.

2.Determined by the L/C proceeds receiving time limit, the maximum loan term can be up to 180 days.

3.The advance can be made in various currencies: if you purchase goods in China, our bank can provide an advance in RMB; if you need to import materials from a foreign country, our bank can directly provide an advance in foreign exchange.

4.It meets your requirements for various settlement means for preparing goods; our bank can deduct the line of packing loan, issue a banker’s acceptance, import L/C, or domestic L/C to you, or directly remit the advance into the supplier’s account according to you instruction.

5.We have a group of certified L/C experts who will strictly assess the risks in terms of L/C terms, conditions, and export documents, thus, reducing your risk of export proceeds.

6.After surrendering the documents, you can apply for export bill purchase or forfeiting for the purpose of returning packing loans, lowering financing costs, and reducing statement receivables.

7.Worldwide agency network to ensure smooth flow of export exchange collection.

Kind Reminders

1.A fixed sum is for a fixed purpose: The packing sums can only be used for stocking up goods for export with L/C. Do not use them in fixed-asset investment and other spending.

2.Bank lending is generally limited to L/C notified by CGB. The originals of the L/C shall be kept by CGB and all amendments are subject to CGB’s consent. After shipping, you shall submit the full set of documents under the L/C for the purpose of receipt of proceeds.

3.Please provide CGB with export contracts and domestic procurement contracts to prove the authenticity of trade and for CGB to supervise the use of funds.

4.The credit of the issuing bank and the terms and conditions of the L/C are foundation of the payment guarantee capacities of L/C as well as an important basis for CGB to grant loans. It is recommended that you contact with our client manager at the original stage of signing contract, determining L/C terms and conditions, and selecting issuing bank to obtain the professional advices of CGB L/C experts, so that you can obtain the packing loans smoothly on receiving the L/C.