I. Introduction
This is a service for ICBC Corporate Internet Banking customers to apply for opening or updating of domestic L/C via Internet Banking. Other functions include approval of L/C opening, enquiry and loan service.
II. Features and Advantages
1. Convenient: The eligible customers can submit application for L/C opening or loan via Corporate Internet Banking as one way to get working capital and improve the use of funds.
2. Flexible: Services are available through Corporate Internet Banking 24 hours a day, 7 days a week.
III. Target Clients
1. Corporate clients who use L/C to do business worldwide.
2. Corporate Internet Banking customers who are in need of short-term funds.
IV. Definitions
Domestic letter of credit: A document issued by L/C opening bank according to applicant's application, which provides a payment undertaking against the L/C terms. A domestic letter of credit is an irrevocable, non-negotiable documentary credit agreement.
Packing loan: A short-term loan for the seller (beneficiary of domestic L/C) to cover the cost of goods, material, production and shipment prior to export of the goods. The packing loan is repaid once the expected payment of goods is received.
Seller's credit: A recourse financing facility against domestic L/C's unpaid outstanding account receivable. ICBC will grant the loan after confirmation is received from L/C opening bank for payment when due.
Buyer's credit: At the request of the L/C applicant, ICBC and the L/C applicant reach agreement that the ownership of the L/C documents and goods is transferred to ICBC. ICBC releases the documents under trust and makes payment to the outside party first.
Responsibility Statement: The contents on this page are for reference only. The ultimate power of interpretation is under the Industrial and Commercial Bank of China Limited. For part of the contents, notice and specific regulations of local branches shall prevail.
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