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I. Introduction
When your company agrees to settle with your importer by credit sale or documents against usance acceptance, Being the export factoring bank ICBC and the import factoring company jointly offer a basket of banking services including checking on the importer's credibility, guarantee on bad debt, loan collection, sales ledger management and trade financing.
1. Two options: non-finance factoring and finance factoring:
Non-finance Factoring-This is an option if you do not need any fund but worry about the receipt of payment, especially from the new market or very risky country or regions. ICBC offers comprehensive factoring service except the trade financing.
Finance Factoring -This is an option when you are in need of funds. ICBC offers comprehensive factoring service including trade financing.
2. Further choices include the export factoring with recourse or the export factoring without recourse. Within the credit guarantee line approved to the importer, you can receive payment without any risk if you choose the export factoring without recourse as long as there is no trade dispute.
II. Target Clients
Apply after your company made the shipment.
III. Features and Advantages
ICBC Export Factoring service offers the following benefits:
1. Sales ledger management;
2. Account receivable collection;
3. Credit risk control and bad debt guarantee;
4. Factoring amount is 100% of the export amount;
5. Receive the payment of goods in advance, speed up the cash turnover;
6. Settle the FX in advance, lock down the risk in exchange rate.
IV. Operation Guide
1. Before any shipment, your company has to ask ICBC for a review on the importer's factoring credit line. Documentations required are:
(1) Export trade contract;
(2) Background information of the trade, including the name and address of importer, name and type of goods, payment term, projected annual sales, expected annual shipment frequency and goods description.
2. ICBC will request the import factoring company to review the factoring line of the importer based on your requirements;
3. Once the limit approved, ICBC will inform you to sign the Export Factoring Agreement.
4. After shipment of your goods, submit the following to ICBC:
(1) Export Factoring Application Form;
(2) Invoice, shipping documents and other commercial bills;
(3) Special document required by the import factoring company.
(4) Other documentations required by ICBC.
V. Application Conditions
1. If you apply for buy-out factoring service, no ICBC credit line is required, your company only to be of standard rating;
2. If you apply for non-buy-out factoring service, your company has to be rated by ICBC with a credit line approved.
VI. FAQ
1. ICBC and the import factoring company will not accountable for any factoring if the importer refuses to pay because of your non-performance;
2. ICBC will provide a short-term loan in a ratio of the amount you claimed from counterparty.
VII. Statement
Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final rights of interpretation. Refer to the announcements and regulations of local branches for further details.
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