Introduction
Packing loan under domestic L/C is a special loan for goods purchase, production, and shipment under the domestic L/C issued by Bank of China on request of the domestic L/C beneficiary (seller).
Features
1. The product meets the need of short-term financing for seller's goods preparation and shipment under domestic L/C;
2. Source of repayment comes from payment under domestic L/C with conditional credit guarantee from the issuing bank;
3. It belongs to the special loan with a clear trade background, and suits for enclosed management.
Interest Rate
The interest rate of packing loan should be applied in the same way as the interest rate of RMB working capital loan at the same level.
Target Customers
Sellers who are short of working capital, while buyers disagree with payment in advance but agree to open a letter of credit (L/C).
Application Qualifications
1. Customers have the corporate business license that is legally approved, registered and annually checked and other valid certifications sufficient to prove the legitimacy and scope of its operation;
2. Customers have the loan card;
3. Customers have the account opening permit and have opened the settlement account with Bank of China;
4. Customers have the credit line in Bank of China.
Process
1. The seller signs the financing agreement with Bank of China and submits the application for packing loan, trade contract, the original copy of L/C and other relevant materials;
2. The packing loan is credited to the seller's account after Bank of China's review and approval;
3. The seller submits documents under L/C to Bank of China after finishing purchase, production and shipment with the packing loan;
4. Bank of China forwards the documents to the issuing bank for payment;
5. Bank of China repays the packing loan when the issuing bank makes due payment.
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