Post-Shipment Financing (Export Bill Purchase under Letter of Credit – Sight and Usance)

Post-Shipment Financing (Export Bill Purchase under Letter of Credit – Sight and Usance)

Export bill purchase under LC is a short-term financing scheme for exporters. Receive advanced financing by selling the export documents at discount to CB Bank providing all the terms and conditions that comply with LC.

FEATURES AND BENEFITS
Role of CB Bank : Paying / Accepting / Negotiating / Deferred Payment / Presenting Bank
Tenor : Range from Sight to Usance of 180 days (maximum)
Benefits to Exporter (Seller)

  • Improve your business' cash flow by receiving payments before the buyer pays you.

  • Convert your receivable into cash immediately hence minimizing the risks.

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

  • Allow you to reinvest your revenue immediately.

  • Gain competitiveness by offering more attractive credit terms to your customers.
How does it work? (Process)

  • Importer sends you (exporter) LC through his bank.

  • CB Bank advises you of the incoming LC.

  • You ship the goods to the buyer according to strict LC terms and conditions.

  • You submit export bill application to CB Bank together with shipping documents that fully complied with LC terms and conditions.

  • CB Bank purchases your LC bills and credits your account with recourse basis.

  • Issuing bank pays CB Bank within 5 business days from receipt of complying documents at the Sight basis or maturity date.
RATES AND FEES (SUBJECT TO CHANGES)

Pre-arranged fees & charges
REQUIREMENTS

  • Letter of Credit (Export Documents Processing) Application Form

  • Request Cover Letter with Company Letterhead

  • Sales contract

  • Commercial invoice

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

  • Export Declaration From