Ask for a 180 day usance documentary credit! 80

You see you use the words 'deferred' and 'forward', which are technically different operations. To put it simply, it can be said that the extended letter of credit is one of the usance letters of credit, and the usual usance letters of credit are 30, 45, 60, 90, 120, 180 days, etc., while the extended letters of credit generally refer to longer usance letters of credit of more than 180 days. In addition, because some countries prohibit the circulation of bills for more than 180 days, basically most of the extended letters of credit do not have bills of exchange, and the issuing bank does not need to accept them.

With regard to the discount you mentioned, then the discount is on the basis of the bill of exchange that has already been accepted, and it seems that you have received the bill of exchange that has been accepted by the issuing bank. Since the negotiating bank refuses to discount, it may be that he feels that there is a problem with the credit of the issuing bank, and he is afraid of taking too much risk, otherwise he would not have rejected a bank acceptance bill under normal circumstances. If this is really the reason, then if you take this bill of exchange to other banks for discount, I am afraid that you will also refuse, and no one wants to accept the acceptance bill of a bank with a credit difference.

Another reason is that your negotiating bank has internal management restrictions or they have not checked the credit of the issuing bank, so you can take the money order and try it at another bank.

The discounting of usance L/C is not acceptable to any bank, first of all, it depends on the capital transactions between you and the bank, as well as the creditworthiness of the bank you discount, that is, the bank that has no business relationship will generally not discount you.

Secondly, it depends on the credit status of the issuing bank of the L/C, if the L/C is issued by a top international bank or a state-level bank, the probability of the bank giving a discount will be greater.

If you don't have either of these things, no bank will give you a discount.

For you, there is no risk, but be sure to indicate in the letter of credit that the seller is allowed to discount at the bank and that the cost and interest are borne by the buyer.

This ** is called false forward, for you, it is actually very close to sight, because you can immediately take the bill of exchange to the bank to discount the money, which is advanced to you by the bank. When the usance bill is due, the bank will ask the seller for the payment. For the seller, it is actually a financing means to postpone the repayment pressure, which is also very beneficial.

Of course, there are risks, and the details in the link should be carefully considered, and it is better for the bank to choose a larger bank.

Hope it helps.

You can open a fake usance letter of credit, for the seller, it is the same as the sight letter of credit can receive the money immediately, for the buyer, the issuing bank should be able to do a financing.

Yes, as long as the bank is willing to give you a sticker.

I don't really understand that the usance letter of credit can handle forfaiting business. I don't know how this works.

Either there is a letter of credit in hand, or there is money in the account, and then the goods will be delivered.

Five-year notes generally have a maturity of 1-5 years (some banks require an amount of more than US$500,000 and a maturity of not less than 180 days), which is medium and long-term financing.

The business scope of bill discounting under usance letters of credit is often limited to the discounting of bank acceptance bills under documentary credits; The scope of forfaiting financing business can be bills of exchange and promissory notes under letters of credit or bank guarantees, and the scope of bills that can be accepted is broader.

3.Banks usually only pay 70%-80% of the par amount in the bill of exchange discounting business under usance L/C; Forfaiting, on the other hand, is commercially customary to pay in full, except for necessary expenses.

The usance letter of credit is divided into three different periods: more than 360 days (including 360 days), 360 days (including 90 days) and less than 90 days.

You can apply for a letter of credit for more than 360 days. All banks handling usance letter of credit business must strictly implement the state's foreign exchange management and utilization policies and have a real background in commodity trading.

The bank will strictly review the qualifications of the applicant. The applicant for issuance must be a registered entity in the "List of Foreign Exchange Payment Import Units"; Units that are not registered and those that have been included in the "List of Importers Verified by the State Administration of Foreign Exchange" by the State Administration of Foreign Exchange shall apply for issuance of certificates with the record form of the State Administration of Foreign Exchange. When handling usance letter of credit business, the bank will strictly examine the credit status and solvency of the applicant for issuance.

The maximum term of a usance letter of credit is more than 360 days (including 360 days). There are 3 different periods: within 90 days, 90 days, 360 days (including 90 days), and more than 360 days (including 360 days).

The usance letter of credit refers to the letter of credit in which the issuing bank or the paying bank performs the payment obligation within the specified period when receiving the documents of the letter of credit, and is a guarantee document issued by the bank (i.e., the issuing bank) to the exporter (i.e., the beneficiary) in accordance with the requirements and instructions of the importer (i.e., the applicant), and the exporter is authorized to issue a usance draft with the bank or importer as the payer, guaranteeing that when the bill of exchange and documents that meet the terms of the letter of credit are delivered, it will be accepted and the payment obligation will be fulfilled when the bill of exchange is due.

This is a fake usance letter of credit with a 180-day forward payment when it is actually a 90-day payment.

As for why it is so opened, it is necessary to ask the owner and the issuing applicant (buyer) the agreed payment method - if the beneficiary and the issuing applicant agree on a 90-day usance payment letter of credit, then this is in line with the agreement, that is, the beneficiary will receive the late payment from the issuing bank when it expires 90 days after the issuing bank sees the order. In the next 90 days, Hu and Li were the financing facilities granted by the issuing bank to the applicant for the issuance of the certificate, and had nothing to do with the beneficiary.

If you want to make a 180-day usance letter of credit, you should choose the acceptance letter of credit or usance negotiation letter of credit, should not choose the late payment letter of credit, after the acceptance of the foreign issuing bank, you can immediately apply to the bank for forfaiting buyout settlement, and then you can go through the verification and tax refund procedures.

Late payment letter of credit, if the amount is large, the bank is not willing to do forfaiting business, and foreign customers still have the right to refuse to pay before the due payment, such as: quality problems, short quantity, etc.

Another question that must be considered: why 180 days, and if it does take that long from receipt to sale, it should be fine.

Finally, the other party should be asked to issue a letter of credit through a well-known big bank!

The above, for your reference!

1) After the document is accepted, it must wait for 180 days before receiving the payment, which affects the flow of funds;

2) If the bill is billed, the beneficiary must bear additional interest and fees;

3) In the unlikely event that the foreign exchange cannot be settled within these 180 days due to bank failure or political reasons, it will be

This is a forward letter of credit. Payment is made 180 days after seeing the ticket. But you can discount it to your correspondent bank.

If you pay the discount interest for 180 days, you will get the cash after the bill. The cost of the letter of credit is too high. Our customers are wire-transferred.

It's been a long time since the letter of credit was confiscated.

20 points is not high.

180 days German customer agrees?

It's all set in your contract.

If 180 days is the payment time agreed by the customer.

2. Fill in 180 days after sight (or 180 days from b l date, depending on your contract).

3. What is the agreement in the contract? Depending on when you need the goods at the latest, it cannot be shipped later than this time (consider the shipping time from Germany to China). This date is set, and the time of 1 is added to this date by 21 days.

1。The validity period, here should indicate the time limit for the final invalidation of the letter of credit, which is generally calculated from the time when the letter of credit is issued, until the letter of credit expires, and this period is the time for the seller to prepare or produce the goods until the goods are loaded on the ship. This time frame generally ranges from one month to three months, or several months.

2。The time limit for the payment of the bill of exchange, here is the time to fill in the payment of the bill of exchange, that is, the time limit for payment within 180 days, but this time limit should be limited to the starting date, generally the date of the bill of lading, or 180 days after the acceptance date. It depends on the form of the letter of credit you issue, and the specific operation should be negotiated with the issuing bank.

3。The latest shipping time limit should be 15 days or 21 days before the expiration date.

The most basic time on the letter of credit is the last shipment date, and the rest of the time is based on it;

The expiry date can be specified (usually 15 days after the last shipment date) or not specified (that is, 21 days after the last shipment date);

draft(s) at 180 days after sight

There is no direct connection between the above and the issuance date, and the issuance date must be earlier than the last shipment date.

If the guest pays on time, the money will be received in the next few days, as there is also the issue of the bank's working days.

Theoretically speaking, the bank will pay when the L/C is settled, but in practice, the bank will not pay immediately, but play a role in urging the customer to pay. The bank will not easily deduct money from the customer's deposit to open the letter of credit to pay the beneficiary. If the customer insists on not giving the money, the beneficiary may not be paid for the goods for a long time.

This is a personal experience and I hope it will help you.

180-day forward is reflected by bill of exchange.

When opening a letter of credit, there is a payment column, write at sight at sight, and write 180days after 180 days.

In addition, the main thing is that the forward 180-day payment is calculated from the beginning of the documents made for each delivery.

Therefore, in the end, you will pay according to the number of tickets and goods issued by the German side.

For example, the first batch of goods will be shipped on January 1, and the payment period will be June. If the second shipment is on February 1, the payment period will be July.

Yes - because your import payment is within 180 days of the scope of the national policy, if you do not pay for more than 180 days, then it will be shown as external debt on the books of the State Administration of Foreign Exchange, and our country implements foreign exchange control, therefore, the state does not allow enterprises to borrow foreign debt at will. If the payment period exceeds 180 days, it is necessary to apply to the State Administration of Foreign Exchange in advance and explain the situation, and the specific situation of the enterprise in the form of the State Administration of Foreign Exchange will be reviewed and decided whether to approve it.

Therefore, the period of foreign exchange payment to you is generally not more than 180 days.

Furthermore, the so-called import bills are in the nature of loans, and overseas payments are also in the nature of loans, but overseas payments are easier than import bills. So, it's already 180 days, why haven't you paid yet? If there is no money, then it is enough to directly take a loan from the bank and pay the money, so why do you need to make a bill of exchange?

Isn't it asking for trouble?