Bill Business
1. Bills Acceptance
(1) Product Definition
Bills acceptance refers to the activity in which the Bank acts as the payer, at the application of the acceptance applicant (drawer), to commit to effect the payment of bills unconditionally to the payee or the endorsee against the valid commercial bill on a specified date.
(2) Product Features
Compared with commercial acceptance bills, the bank acceptance bills boast more reliable credit guarantee of banks, a broad circulation scope and strong cashability, not only reducing the capital tie-up but also saving the capital cost for enterprises.
(3) Target Customers
Customers in short of cash for commodity purchase in the trading course of commodities can apply to the Bank for acceptance of bills, to obtain credit support from the Bank.
(4) Application Procedures
The following documents shall be presented for the application: acceptance application, business license for corporation, duplicate of organization code, loan note (card), the audited financial statement of the previous year and the recent financial statement, the sale contract between the buyer and the seller, and guarantee documents for acceptance application, etc.
2. Bills Discount
(1) Product Definition
Bills discount is a kind of credit service that the Bank pays the remaining amount to the payee after deducting the discount interest based on the par value of undue commercial bills with which the payee or the bearer applies to the Bank for discount when it is in short of funds. Bills discount includes bank acceptance bills and commercial acceptance bills.
(2) Product Features
With the discount service, a company can encash its undue commercial bills quickly, accelerate its capital circulation, and improve the capital usage efficiency by simple formalities at a low financing cost.
The Bank will hold the bills once discounted and can honor them with the accepting bank directly upon maturity.
(3) Application Procedures
The following documents shall be presented for the application: discount application, business license for corporation, duplicate of organization code, loan note (card), recent financial statement of the applicant, bank acceptance bills or commercial acceptance bills which are valid and undue, and relevant sale contract or trading certificate, etc.
3. Bills Discount with Interest Paid by the Buyer
(1) Introduction of Functions
The service of bills discount with interest paid by the buyer means that after selling commodities, the seller may hold the commercial bills delivered by the buyer to handle the discount with the Bank, with the discount interest paid by the buyer.
(2) Features
The service of bills discount with interest paid by the buyer has the functions of commercial bills such as replacement of bank loan, reduction in customer’s financing cost, drawing upon use, and decrease in idle money. Meanwhile, it also possesses other convenient functions such as facilitating the buyer’s centralized procurement, the seller’s sales business, and business development and income growth of the Bank.
(3) Application Procedures
The customer must sign the “Business Cooperation Agreement” (with three parties or two parties involved) with the Bank and provide the following documents: discount application, business license for corporation, duplicate of organization code, loan note (card), recent financial statement of the applicant, bank acceptance bills or commercial acceptance bills which are valid and undue, and relevant sale contract or trading certificate, etc.
4. Bonded Warehouse
(1) Introduction of Functions
The service of bonded warehouse refers to the model in which the Bank (the accepting bank), the distributor (the acceptance applicant) and the supplier, entering into a tripartite cooperation agreement, carry out special bills services by way of preservation warehouse, namely taking the cargo control, including supervision of cargo and repo guaranty, as the guaranteeing measures.
(2) Features
As for the manufacturer, the service of bonded warehouse can promote sales, accelerate funds recovery, and bear limited and controllable guarantee obligations;
It can alleviate the financial pressure of the distributor with the guarantee support of the supplier and bank credit support, thus facilitating the distributor to expand business scale, safeguard supply to avoid seasonal shortfall, and enjoy favorable prices.
(3) Application Procedures
The manufacturer and distributor submit the application
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The Bank carries out credit and guarantee investigation
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The Bank conducts credit approval level by level
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The three parties enter into the tripartite cooperation agreement and relevant acceptance and guarantee contracts
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The distributor deposits the security deposit for bill drawing
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The Bank draws the acceptance bill and gives it to the manufacturer
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The manufacturer stores goods into the designated warehouse and conducts supervision according to instructions of the Bank
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The distributor adds the delivery security deposit
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The Bank gives the consignment notice
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The distributor takes delivery and sells goods
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Recovery of sales payment
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Add security deposit for delivery or honor the bank acceptance bills
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