Export Trade Finance Products

ICBC (Asia) provides diversified export trade finance product selections and customized service solutions to help export trade customers to achieve efficient trade repayments and effective business risk management.

Product name Product brief introduction
L/C Advising Notify customer when export L/C arrived
L/C Confirmation Fulfill the payment commitment under the condition of "Document complies with terms of L/C"
Transferable L/C Transfer the rights and interests of the export L/C to the customer’s supplier
L/C Collection Collect payment from the issuing bank
L/C Negotiation Post-shipment financing under L/C
Packing Loan Pre-shipment financing under L/C
Export collection Transfer collection documents to importer's bank for payment
Export Collection Financing Post-shipment financing under export collection
Export Invoice Financing Post-shipment financing under telegraphic transfer (TT)
Purchase Order Financing Pre-shipment financing under telegraphic transfer (TT)
Forfeiting Forward L/C buyout

L/C Advising

You are recommended to request importer to designate ICBC (Asia) as the L/C advising bank in order to enjoy our convenient and reliable L/C advising services when trade payments through L/C is agreed with your importer. After receiving the L/C, the Bank will notify the L/C status at once in order to let you arrange the shipment and prepare trade documents.

Applicable scenarios

As an exporter, you require to select L/C as the settlement mode.

Product features

  • Verify L/C’s authenticity: ICBC (Asia) trade finance experts will verify L/C’s authenticity on your behalf, and help to receive payment after goods are shipped.

L/C confirmation

You can request the L/C issuing bank to add "require confirmation" clause on the L/C if you worry about the uncertainty on issuing bank’s capacity on fulfilling payment responsibilities. ICBC (Asia) may add confirmation to the L/C when providing L/C advising service to ensure your payment be fulfilled under the premise of "documents comply with credit terms".

Applicable scenarios

You wish to invite ICBC (Asia) to secure the payment commitment when facing unfamiliar importer or issuing bank and worrying they are unable to fulfil the payment responsibilities.

Product features

  • Secure payment collection: Your L/C payment will be further guaranteed to reduce transaction risks.

Transferable L/C

As a trade intermediary, you need to collect payment from the downstream importer’s bank by L/C, and pay to the upstream supplier in the same way, you can request your importer to issue a transferable L/C to you as the beneficiary. Even if you do not have a credit line in ICBC (Asia), the Bank can still transfer all or part of the rights and interests of the transferable L/C to your supplier (second beneficiary). After receiving payment from the issuing bank, the Bank will pay the supplier directly on your behalf. There are two common situations of transferable L/C arrangement:

  • Fully transferable: The first beneficiary (trade intermediary) transfers all L/C rights and interests set in the terms and requirements to the second beneficiary (supplier).
  • Partially transferable: The first beneficiary (trade intermediary) transfers part of the rights and interests of the L/C to the second beneficiary (can transfer to more than one supplier), with information of total amount, unit price, expiry date, insurable value, document submission and shipping schedule are allowed to be updated, while other terms detail shall remain unchanged.

Applicable scenarios

As a trade intermediary, you need to collect payment from importers and pay suppliers by L/C.

Product features

  • No credit line required: Even if you do not have a credit line in ICBC (Asia), you can still apply for the transferable L/C and issue L/C to the supplier.
  • Payment commitment: You can obtain payment guaranteed by downstream importer, while making payment commitment to upstream supplier(s) by transferable L/C.

L/C Collection

After your goods being shipped, you can choose ICBC (Asia) L/C collection services to collect payments from the issuing bank and avoid extra expenses if you have no financing needs. ICBC (Asia) can base on your request to check whether all of the documents that you presented comply with L/C terms and requirements in order to avoid the delayed payment or refusal of payment by the issuing bank.

Applicable scenarios

You do not have financing needs after the goods being shipped, and require to collect payment from the issuing bank on the maturity date.

Product features

  • Professional and reliable services: ICBC (Asia) has the professional and experienced trade services team, as well as extensive network of correspondent banks in Mainland China and over the world, which provides you with fast collection services and helps speeding up the processing of export documents.

L/C Negotiation

Under the condition of "documents comply with credit terms" be fulfilled after reviewing your application, ICBC (Asia) can provide a certain amount of funds by purchasing drafts and/or documents under the said L/C for you to obtain funds and meet your business needs.

Applicable scenarios

You wish to obtain financing as soon as possible after the shipment of goods.

Product features

  • No credit line required: You can apply for L/C negotiation even you do not have a credit line in ICBC (Asia).
  • Speed up capital turnover: You can obtain working capital in advance without waiting for the issuing bank to settle the payment.

Packing Loan

You can apply for packing loan as short-term financing to pay for raw material procurement, production and transportation costs of the goods preparation under L/C arrangement.

Applicable scenarios

You wish to obtain financing before shipment to cover the raw material procurement, production and transportation costs of the goods preparation under L/C arrangement.

Product features

  • Pre-shipment financing: Fulfill funding needs in the production stage and reduce the pressure on cash flow.

Export Collection DA/DP Documents

You can choose ICBC (Asia)’s export collection services to collect payments and secure your transaction. The Bank will deliver the collection documents on behalf of you to the importer's bank (collecting bank) quickly and securely, and inform the importer to pay. There are two common forms of export collection arrangement:

  • Documents against payment (D/P): Trade and shipping document will be released after the importer has paid the full payment.
  • Documents against acceptance (D/A): Trade and shipping documents will be released after the importer accepts the usance bills of exchange.

Applicable scenarios

You and the importer agreed to collect export payment in the form of D/A or D/P.

Product features

  • Secure the transaction: Importer can only obtain the full set of trade and shipping documents by full payment of accepting the usance bills of exchange.

Export Collection Financing

You can apply for export collection financing when submitting full set of trade and transportation documents, and the Bank will provide you the certain amount of funds based on the expected receivables of the exact transaction, providing the cash in advance to meet your capital turnover needs.

Applicable scenarios

You wish to obtain financing as soon as possible after the goods are shipped under the export collection.

Product features

  • Speed up capital turnover: You can obtain funding in advance for a more flexible business operation.

Export Invoice Financing

If you and the importer agree to settle by open-account payment and you wish to obtain fundings after the shipment, you can apply for export invoice financing by presenting the commercial invoices and copies of shipping documents, and transfer the accounts receivable to us in order to obtain instant funds.

Applicable scenarios

You wish to obtain financing after shipment when choosing open-account payment to keep the sustainability of capital turnover.

Product features

  • Speed up capital turnover: You can obtain financing before the payment due date, in order to convert the accounts receivable into working capital for a more flexible business operation and enhance the cash flow availability.

Purchase Order Financing

After receiving a purchase order, and if you need a short term financial intermediation, you can apply for purchase order financing with a valid order or trade contract to obtain certain amount of funds to pay for raw material procurement, production and transportation costs before shipment.

Applicable scenarios

When the trade transaction is non-L/C mode, and you would like to obtain financing before shipment to pay for the purchase, production and shipping of the raw materials before purchase order received.

Product features

  • Financing before shipment: Fulfill your capital needs in the production stage and reduce the pressure on cash flow.

Forfaiting

Forward L/C buyouts allow the transfer of rights and interests of your account receivables under the L/C that has been accepted by the issuing bank to ICBC (Asia), without worrying about not being paid by the issuing bank or the downstream importer.

Applicable scenarios

You wish to receive cash in advance and off-balance sheet arrangement, in order to get funds and improve cash flow liquidity on financial statements.

Product features

  • Sell expected receivables under L/C for funds to speed up the capital turnover and improve cash flow availability.
  • Risk avoidance: You will not bear the interest rate, exchange rate, credit and country risks of issuing bank and importer.

Application Forms

Contact us

Should you have any enquiries, please contact our customer services hotline at 2533 8881 or by sending email to tradefinance@icbcasia.com

To borrow or not to borrow, borrow only if you can repay.