Invoice Financing (Purchase)

Invoice Financing (Purchase)

This is a funded facility provided by the Bank in the form of an advance of one year or less. Purpose of the financing is for buyer (“borrower’s”) purchases on open account basis. This facility can be offered for post shipment of goods.

FEATURES AND BENEFITS
Role of CB Bank : Financing Bank and Trade service product provider
Tenor : 30 days to 180 days (subject to review from CB Bank)
Benefits to Importer (Buyer)

  • Better cash flow or greater flexibility and liquidity

  • Enjoy credit terms pre-approved by the Bank, with principal and interest only payable on maturity

  • Financing can be up to 50-80% of the invoice, subject to approved trade facility credit limit

  • Buyer’s working capital or cash flow is not tied up and can be deployed for other purposes

  • Enhance business reputation for being able to accept quick payment terms.
Process

  • Importer receives the invoice and shipping documents from the exporter.

  • Importer applies for invoice financing (purchase) to CB Bank.

  • CB Bank purchases importer’s copy of import shipping documents with recourse basis.

  • The proceeds must be paid directly to the exporter via Exporter’s Bank.

  • Importer pays back to CB Bank when the loan term is due.
RATES AND FEES (SUBJECT TO CHANGES)

Pre-arranged fees & charges
REQUIREMENTS

  • Completed Import Invoice Financing (Purchase) Application Form

  • Request Cover Letter with Company Letterhead

  • Commercial invoice / sales contract

  • Shipping documents (Bill of Lading / Air waybill / Packing List)