Export bill purchase under documentary collection is a short-term financing scheme for exporters with full recourse basis. Receive advanced financing at the face value after selling the export documents at discount to CB Bank.
Role of CB Bank | : | Financing Bank |
Tenor | : | As per terms and conditions stated in DP and DA (Documents against Payments and Documents against Acceptance) |
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Improve your business' cash flow by receiving payments before your buyer pays you.
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Convert your receivable into cash immediately hence minimizing the risks.
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Financing can be up to 50-80% of the documentary collection, subject to approved trade facility credit limit
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Allow you to reinvest your revenue immediately.
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Your trade documents are released only if the buyer pays or accepts bills of exchange.
For Export Bill Purchase – DP (Documents against Payments)
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You (Exporter) sign sales contract agreement with your buyer (importer).
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You ship the goods to the importer.
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You submit DP purchase application to CB Bank with the shipping documents.
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CB Bank purchases the DP and credits your account with recourse.
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CB Bank sends shipping documents to the Collecting Bank.
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Collecting Bank releases the shipping documents to the importer, upon sight payment.
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Collecting Bank makes payment to CB Bank.
For Export Bill Purchase – DA (Documents against Acceptance)
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You (Exporter) sign sales contract agreement with your buyer (importer).
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You ship the goods to the importer.
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You submit draft and documents to CB Bank under DA terms.
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CB Bank purchases the DA and credits your account with recourse.
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CB Bank sends documents to the Collecting Bank.
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Collecting Bank delivers shipping documents to the importer.
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Collecting Bank informs CB Bank of draft acceptance and maturity date.
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The buyer makes payment to CB Bank through Collecting Bank on maturity.
Pre-arranged fees & charges