Domestic Order Financing

Product Introduction

Domestic order financing means the financing service where the bank provides the seller with the closed financing based on the orders signed by the buyer and the seller in the domestic trade, in order to meet the seller’s financial needs for purchasing raw materials, organizing production and shipping goods under the order, and regards the estimated income from sales under the order as the first repayment source.

Product Features

1.      It has stable upstream and downstream relationship, and customers may get the financing loan from CGB based on the order without additional pledge guarantee;

2.      It is favorable for the seller to organize the goods sources quickly, finish the transaction and improve the ability to accept orders;

3.      It reduces the seller’s employment of self-own funds, effectively improve the capital turnover efficiency and increase the margin;

4.      The maximum financing term is up to 1 year depending on the completion of the order;

5.      The financing products cover various on-balance sheet and off-balance sheet short-term financing products such as working capital loan, opening of bank acceptance bill, opening of L/C and commercial acceptance bill discounting, etc.

Kind Reminders

1.      The order submitted by the seller must be true and valid and based on the customer’s true and real procurement intention as well as the real trade background;

2.      The external payment object must be clear before the financing loan is released. Generally, the external payment of the financial loan is in the form of entrusted payment;

3.      After the financing loan is released, the bank will monitor the logistics and funds under the order throughout the process. CGB’s financing loan will be repaid with the income from sales.