Import Trade Finance Products

ICBC (Asia) provides customers with diversified import finance supports and customized service solutions according to trade settlement model and cash flow financing needs for customers engaging in import trade to ensure the smooth and efficient transactions.

Product name Product brief introduction
Import L/C issuance Issue L/C to exporter
Back to Back or Front to back L/C Issue the baby L/C to exporter before or upon receiving the master L/C
L/C Financing Provide financing under L/C
Shipping Guarantee Support goods delivery arrangement prior to the arrival of shipping documents
Import Collection DA/DP Documents Inform customer and arrange payment when supplier sends the documents
Import Collection Financing Provide import loan under document collection
Import Invoice Financing Obtain financing at the time of purchasing goods by presenting supplier’s invoice and shipping documents

Letter of Credit Issuance

When you and the exporter agreed to settle the payments by L/C (Letter of Credit), ICBC (Asia) will issue the L/C to the exporter according to your instruction and requirements.

Applicable scenario

As an importer, you want to settle the payment with the exporter by L/C.

Product features

  • Improve negotiation position: you can obtain more reasonable and favorable conditions (such as enhancing bargaining power, extending payment tenor, etc.) since the L/C issuing bank will empower the exporter with conditional payment commitment other than commercial credit.
  • Secure transactions: ICBC (Asia)'s professional team can assure the trade through the proficiency in international practices and rules which contributes to reducing terms and documentation risks of L/C.
  • Reduce funds tied-up: Reduce the occupation of your funds before the settlement of the issued L/C.

Back-to-Back/Front-to-Back L/C Issuance

ICBC (Asia) can issue another L/C (known as baby L/C) involving the same goods with you as the applicant to your supplier based on the master L/C received by you as the beneficiary(back-to-back L/C) ; or the Bank may issue the baby L/C at the time of master L/C being drafted (front-to-back L/C).

Applicable scenario

As a trade intermediary, you wish to have guaranteed payment from the downstream importer’s bank, and make a payment commitment to upstream suppliers for settlement, while avoiding the disclosure of both parties to one another.

Product features

  • Payment commitment: In the back-to-back or front-to-back L/C arrangement, you can use the L/C issued by the importer’s bank as payment source for the import L/C you issued to your supplier’s bank for a secured delivery.
  • Trade partners information confidentiality: Back-to-back L/C or front-to-back L/C is an independent L/C with you as the applicant and the supplier as the beneficiary involving the same lot of goods of an issued or coming L/C that set you as the beneficiary, that the downstream buyer information will not be disclosed in order to keep the upstream and downstream trade channel be confidential.

L/C Financing

If you import goods by issuing L/C, you can get finance through the Trust Receipt Loan under it and repay the loan on the maturity date.

Applicable scenario

There is a funding need when importing goods by issuing L/C.

Product features

  • Avoid detention and demurrage fees with the cargo being stuckat the port.
  • Speed up capital turnover: The loan can be repaid on the maturity date of the trust receipt financing when the cash inflow is obtained by selling the goods.

Shipping guarantee

If you have an import L/C issued by ICBC (Asia) for your goods which arrives prior to your receipt of shipping documents you can apply for shipping guarantee which allows you to take delivery of the goods prior to the arrival of documents of L/C in order to avoid detention and demurrage, or loss due to deterioration of the goods.

Applicable scenario

Your imported goods arrive at the port prior to the original shipping documents, with an urgent pick-up requirement.

Product features

  • Reduce costs and losses: Minimize detention, demurrage, storage fees and other expenses caused by delayed pick-up; or the loss caused by deterioration of goods.

Import Collection DA/DP Documents

If the payment is not settled by the form of L/C, ICBC (Asia) will inform you according to the trade and freight-related documents and payment instructions sent by the exporter’s bank, and arrange payment for you . You can obtain full set of documents after payment (D/P) or at the acceptance of the usance bills of exchange (D/A).

  • Documents against payment (D/P): The documents will be released after you settle full payment.
  • Documents against acceptance (D/A): The documents will be released after you accept the usance bills of exchange, and pay on the maturity date.

Applicable scenario

You and your exporter agreed to settle the payment by D/A or D/P.

Product features

  • Simple procedures: The procedure is simpler and the bank fee is relatively lower than the fee of L/C.
  • Enhance certainty of transaction: D/A settlement arrangement allows you to examine the quality of the goods before the payment which minimizes quality uncertainty.
  • Release funds tied-up: you can pay on credit under D/A rather than pay in advance when exporter preparing for goods and shipment. It allows you to get the shipping documents and sell the goods before payment in order to obtain cash inflow for the repayment.

Import Collection Financing

You can get finance from ICBC (Asia) by applying for the trust receipt loan under D/P or D/A after receiving transport documents and repay the loan on the maturity date of the trust receipt loan.

Applicable scenario

There is a financing need when importing goods under import collection.

Product features

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

Import Invoice Financing

If you wish ICBC (Asia) to pay for the goods for you in advance, you can apply for a short-term import invoice financing by presenting the commercial invoices and shipping documents provided by your exporter. The bank will pay to the exporter on your behalf in advance.

Applicable scenario

You require the Bank to pay to the exporter on your behalf in advance.

Product features

  • Speed up capital turnover: You can make use of the cash obtained from selling the goods to repay the financing in order to improve and retain a smooth cash flow chain, for a more flexible business operation and enhance the cash flow availability.

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.