International Business > Inernational Trading Financing > Export Trading Finacing1?/strong> Packing loan
Packing loans are a short-term financing facility provided by JNB against the valid original copy of a L/C issued at an overseas bank, and released to the exporter for stock inventory, material inventory, production, processing and shipping of exported goods in a sum proportional to the amount provided under the L/C.
The packing loan’s advantages of JNB
?Expand trade opportunities ?In case the exporter is short of self-owned capital, and has no way to procure the prepayment, the packing loan will help the exporter to develop business and grasp the trade opportunity successfully.
•Reduce the occupied capital ?Free the exporter from using its self-owned capital at the stages of goods preparation such as production, purchase and etc, relieve the pressure of work capital of the exporter.
?with less intermediate processes and high efficiency
2?/strong>Export Bill Purchase
Financing of money in transit supplied by the bank with the export bill as the mortgage as required by the exporter after delivers the goods and presents the documents requested by the letter of credit or the contract.
WHY——Why choose export bill purchase ?
Accelerate the capital circulation——The exporter can get paid in advance before the importer makes the payment, and the capital circulation is speed up;
Simplify the financing procedure—The financing procedure of export bill purchase is simpler and more convenient than that of the working capital loans;
Improve the cash flow?Export bill purchase can increase the present cash inflow of the exporter to improve the financial condition and strengthen the financing ability;
Save the financial expenses—The clients can choose the financing currency in accordance to the interest rates of different currencies in Bank of China, so as to minimize the financial expenses
3 Negotiation or Discount of L/C Bills
By this service, JNB purchases a future payment due to you under an export letter of credit to expedite your cash flow and improve your liquidity.
This service offered by JNB features very simple procedures. All you have to do is to present the shipping documents to JNB after the goods are dispatched and request the bank to negotiate/discount the bills under the L/C.
4?/strong>Shipping Guarantee
Shipping guarantee is a written guarantee signed by the bank and issued to the importer for picking up the goods from the shipping company in the case of arrival of cargo prior to the shipping documents.
Such a kind of trade finance is especially applicable in the case of short shipping voyage and arrival of cargo prior to the documents.
The advantages of the shipping guarantee
Grasp the market opportunity ?In the case of arrival of cargo prior to the bill of lading, the importer could pick up the goods in advance only with the shipping guarantee signed and issued by the bank, and the market opportunity is grasped as a result.
Reduce the capital occupied ?By shipping guarantee, the importer could pick up the goods, declare to the custom, sell and get the sales income before making payment. No self-owned capital is involved in the whole process and the working capital tension is relieved.
Improve the cash flow ?In the shipping guarantee business, the direction of cash flow is “inflow first and outflow next? through which the net cash inflow of the importer is increased and its liquidity improved.
5?/strong>Forfaiting
Forfaiting, also called bill buy-up or bill buy-out, is a kind of trade financing that Jinan city commercial bankk , as the buyer-up, purchases without recourse from the exporter the accepted usance draft so as to provide finance to the exporter.
The advangtages of JNB:
100 percent financing-Without recourse and not occupying exporter’s credit line. That is to say once the exporter obtains the financed fund, he will be exempt from the responsibility to repay the debt;
Improve cash flow-receivables become current cash inflow and it is beneficial to the exporter to improve financial status and liquidation ability so as to heighten further the fund raising capability;
Advanced tax refund-using JNB forfaiting service, the exporter can make the verification of export and thus get the tax refunded in advance just after financing;
Evade various risks-forfaiting business enables the exporter to transfer various risks resulted from deferred payment, such as interest-rate risk, currency risk, credit risk and political risk;
?nbsp; Increase trade opportunity-with forfaiting, the export is able to grant credit to his buyer freely, and thus, be more competitive in the market;
6、Export Credit Insurance Financing
This product is jointly designed by JNB and Sinosure (China Exports Credit Insurance Corporation). It features short-term exports credit insurance plus bank financing.
This product is suitable for export collections under D/P, D/A or L/C terms. In some special cases, it can also be arranged for deals under O/A terms
You may have the following benefits from the Insured Finance:
·Protection against commercial risk and country risk for export receivables
·Low cost financing
·Becoming more competitive
