What is bank export bills and what is export bills

The most widely used export** financing.

l After the exporter has issued the goods and handed over the documents required by the letter of credit or contract, the bank shall provide the exporter with the export documents as collateral at the request of the exporter.

l The scope of export bills handled by Bank of China includes: export bills under L/C and export bills under documentary collection; Foreign Currency Export Bills and RMB Export Bills.

l Speed up capital turnover - you can get paid in advance before the importer pays for the goods, which speeds up the capital turnover;

l Simplify financing procedures - financing procedures are simpler and easier than working capital loans;

l Improve cash flow – can increase your current cash inflow, thereby improving your financial position and providing financing ability;

l Save financial costs - you can choose the financing currency according to the interest rate level of different currencies when handling export bills in Bank of China, so as to minimize financial costs.

l Limited working capital, relying on rapid capital turnover to carry out business;

l Temporary capital turnover difficulties encountered after delivery and before collection;

l After delivery, before receiving payment, encounter new investment opportunities, and the expected rate of return is definitely higher than the interest rate of bills.

2. Submit a formal application for export bills to the bank (usually the advising bank or the negotiating bank);

3. The applicant for the bill of credit under the letter of credit shall be the beneficiary of the letter of credit;

4. Restricting the L/C negotiated by other banks cannot handle export bills;

5. To apply for export bills under L/C, export documents that match the documents should be submitted as far as possible;

6 If you wish to finance through export bills, it is best to avoid the following: aThe transport document is a non-property document; b.

Failure to submit a full set of title documents; c.transfer of letters of credit; d.Letters of credit with soft terms; e.

Submit documents with material discrepancies.

Advantages – the advantages of Bank of China.

l Excellent reputation - 90 years of history, has been rated as "China's Best Bank" by the authoritative financial magazine "Euromoney" for eight times, gradually improved corporate governance mechanism, all-round business process integration, comprehensive service connotation and efficiency, rich and personalized financial products, jointly create a Chinese bank belonging to the world;

l Determined to reform - pay attention to the development strategy of intermediate business, especially all kinds of first-class financing;

l Abundant products - can handle export bills under the letter of credit, export collection bills, and the first RMB export bills, accumulated rich business experience;

l Abundant funds - the Chinese banks with the strongest foreign exchange capital strength, the RMB capital strength has also been continuously strengthened, and there are sufficient funds to support customers to handle this business;

l **Preferential - according to the market interest rate level of different currencies to provide the most beneficial financing solutions for customers, to help customers reduce financial costs to the greatest extent; l Credit support - the first commercial bank in China to implement a unified credit system, designed a variety of credit methods for the best financing;

Billing: It is not to deposit the letter of credit in the bank and apply for a loan. Relying only on the original letter of credit and not submitting the documents, it is called "packing loan".

At present, banks are basically managed like working capital loans, and there are more follow-up management requirements than working capital loans, so they basically exist in name only. Bills are the same as "export negotiations", which are applied for after submitting documents to the bank (generally apply at the same time when submitting documents, and the same document as the document submission contact form). In the practical language of banks and the oral language of bank international settlement practitioners, "bills" is the act of handing over the documents under the letter of credit to the bank and financing the beneficiary before the bank receives the payment from the issuing bank, which is a concept that can cover "export negotiation".

For example, the department of BOCHK that handles L/C documents and financing is called "Bills Bills Center".

Negotiation: According to the spirit of the UCP600 era, it is the act of the negotiating bank to prepay or agree to prepay the payment of the beneficiary's letter of credit under the letter of credit before being repaid.

What's the difference? I can responsibly tell you that the people in the banking industry themselves are not clear: the first time I came into contact with the financing after the submission of documents under the letter of credit, the agreement signed is called the export bill purchase contract - there is no equivalent export negotiation contract!

Later, the term "export bills" was not used in the domestic general rules of loans and in the world, and it was uniformly changed to "export negotiation contract". After some time, I felt that the "export negotiation" had to "pay the consideration", but the bank might not do that, so it was said that it would have to be changed back to the export bills contract. Please note that the Export Bills Contract and the Export Negotiation Contract will not be used at the same time, as the bank will see that this is the same thing.

For myself, if:1The handling bank does not have the "settlement financial institution quota" of the issuing bank or the quota is insufficient, so it must occupy the credit line of the beneficiary and implement relevant guarantee measures according to the credit conditions.

2.The financing bank has a credit line from the issuing bank, but there are discrepancies in the documents, and the confirmation of the issuing bank has not yet been obtained, so it must occupy the credit line of the beneficiary.

3.If the financing bank has a credit line of the issuing bank, and there is no discrepancy in the documents, or if there is a discrepancy but the issuing bank has accepted and accepted it, it does not have to occupy the credit line of the beneficiary but occupies the "settlement financial institution line" of the issuing bank"。The financing bank is worried about the operational risk and does not make financing when sending the bill, but must wait for the issuing bank to promise to pay before financing.

I generally prefer to call it: "export bills".

If the handling bank has the "settlement financial institution quota" of the issuing bank and has a balance that meets the requirements of the documents, the bank will credit the beneficiary account with the amount of interest and procedures withheld at the same time as sending the documents, which I can call "export negotiation".

Therefore, domestic banks do not have "export negotiations".

It is not a matter of property rights, and no matter what it is called, there is recourse under the provisions of domestic financing agreements.

If the target enterprise has the right to operate import and export and has the qualification of an independent legal person, and uses the letter of credit as the export settlement method, it can apply to the bank for export bills with the export documents under the letter of credit.

If an enterprise needs to apply to the bank for export bills, it must meet the following conditions:

1.The enterprise should open a current account in RMB or foreign currency with the applicant bank, handle the import and export settlement business, and account for all income and expenditure under the bill financing business;

2.The enterprise has good credit, strong performance ability, good foreign exchange collection record, and certain foreign trade experience; 3.The exported commodities should be the main export products of the enterprise, meet the market demand, the domestic and foreign purchase and sales network is sound and smooth, and can obtain the necessary quotas and approvals;

4.Enterprises should have a sound financial accounting system, be able to submit financial statements to the bank on time, and accept the bank's real-time audit of the enterprise's production, operation and financial status. Export mortgage remittances should be used for reasonable capital turnover needs;

5.The political situation and economic situation of the issuing bank and the reimbursing bank are stable, there is no shortage of foreign exchange, there is no particularly strict foreign exchange control, there is no financial crisis, and the issuing bank has its own reliable credit, stable business style, and no bad record of deliberately picking on inconsistent documents and unreasonably refusing to pay;

6.The terms of the letter of credit are clear and complete, in line with international practices, and have no potential risk factors recognized by the bank. In principle, the transfer of L/C banks shall not handle export bills;

7.The documents for the export of bills must strictly comply with the terms of the letter of credit, so that the documents are consistent and consistent. For export bills under usance letters of credit, they can only be described after receiving acceptance from the issuing bank.

Currency, interest rate, term.

The currency of the export bill is the original currency of the document, and the interest rate of the bill is determined according to the status of the international financial market, the financing cost of the applicant bank, the credit risk of the issuing bank and other factors.

The proportion of the amount of the bill is determined by the bank according to the actual situation, and the maximum amount is 100% of the amount of the bill, and the bank will deduct the bank fee and the interest on the bill, and then transfer the net amount to the enterprise account. If the actual date of receipt of foreign exchange exceeds the period of the bills, the bank will charge the interest on the bills.

The term of export bills at sight shall be determined according to the region and route of export receipts, and the term of usance bills of credit shall be from the date of receipt of acceptance by the issuing bank to the third working day after the due date of payment. If the negotiated amount is not recovered after the bank has collected and negotiated with the issuing bank, the bank has the right to exercise the right of recourse against the enterprise to recover the amount, interest and bank charges of the bill.