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.
FEATURES AND BENEFITS
| Role of CB Bank | : | Financing Bank |
| Tenor | : | As per terms and conditions stated in DP and DA (Documents against Payments and Documents against Acceptance) |
Benefits to Exporter (Seller)
- Improve your business' cash flow by receiving payments before your buyer pays you.
- Convert your receivable into cash immediately hence minimizing the risks.
- Financing can be up to 50-80% of the documentary collection, subject to approved trade facility credit limit
- Allow you to reinvest your revenue immediately.
- Your trade documents are released only if the buyer pays or accepts bills of exchange.
Process
For Export Bill Purchase – DP (Documents against Payments)
- You (Exporter) sign sales contract agreement with your buyer (importer).
- You ship the goods to the importer.
- You submit DP purchase application to CB Bank with the shipping documents.
- CB Bank purchases the DP and credits your account with recourse.
- CB Bank sends shipping documents to the Collecting Bank.
- Collecting Bank releases the shipping documents to the importer, upon sight payment.
- Collecting Bank makes payment to CB Bank.
For Export Bill Purchase – DA (Documents against Acceptance)
- You (Exporter) sign sales contract agreement with your buyer (importer).
- You ship the goods to the importer.
- You submit draft and documents to CB Bank under DA terms.
- CB Bank purchases the DA and credits your account with recourse.
- CB Bank sends documents to the Collecting Bank.
- Collecting Bank delivers shipping documents to the importer.
- Collecting Bank informs CB Bank of draft acceptance and maturity date.
- The buyer makes payment to CB Bank through Collecting Bank on maturity.
RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges