Here are five ways of financing international trade, which I have compiled. Welcome to read and understand.
I. Import bills
Import bill refers to the first payment and release of the documents under the letter of credit by the issuing bank according to the import bill agreement signed with the applicant and the trust receipt submitted by the applicant after receiving the documents under the letter of credit and checking them correctly. After the applicant picks up the goods with the certificate and sells them in the market, the principal and interest of the bill will be returned to the issuing bank, Guomao Port Elite Network.
In a sense, it is a flexible financing method that the issuing bank gives the applicant to convert the forward letter of credit into the sight letter of credit+import bill. However, some banks cover up their advances in the name of import bills, which limits their business development to some extent.
In fact, for banks, whether it is relative to general working capital loans or forward letters of credit, import bills of exchange, which is equivalent to special loans, can make banks hold the ownership of goods, which is actually much safer and has better returns. For foreign trade enterprises, on the one hand, importing bills of exchange makes the loan term more flexible and can reduce costs; On the other hand, if the interest rate of RMB loans is basically consistent with the corresponding discount rate abroad, RMB can be used instead of foreign currency to prevent exchange rate risks. Of course, from the bank's point of view, we can also avoid it by improving the internal system, collecting a certain margin, strictly examining imported goods, investigating their market prospects and other measures. Quot Fake bills of exchange, real advances and inability to repay the principal and interest of bills of exchange in time because the imported goods are not marketable.
Two. Import collection document
Import collection bill refers to that after receiving the complete set of collection documents sent by the exporter through the collecting bank, the collecting bank pays the bill in advance according to the bill application submitted by the importer, the trust receipt and the import collection bill agreement signed between the collecting bank and the importer, and the importer takes delivery of the bill with the certificate, and returns the principal and interest of the bill to the collecting bank with the sales money.
No matter for banks or foreign trade enterprises, the advantages of imported bills of lading are basically the same as those of imported bills of lading. However, the risk of the bank itself far exceeds the import bill. Because the import bill of exchange is based on the letter of credit business for which the bank has the main responsibility for payment, if the documents are consistent and the documents are consistent, the issuing bank must fulfill the obligation of external payment even if the applicant does not pay. In this way, if the exchange rate risk and interest are excluded, the import bill will not bring greater risks to the issuing bank. Import collection belongs to commercial credit, and the collecting bank is not responsible whether the importer pays or not. However, if the importer continues to make import collection documents, the importer will undoubtedly transfer the commercial credit originally given to the exporter to the collecting bank, thus increasing the risk of the collecting bank. As a collecting bank, it should examine and approve the bill amount for the importer's turnover according to the importer's credit status, business operation and mortgage/guarantee, so as to realize the organic combination of expanding business and preventing risks.
3. Overdraft within the limit
The so-called overdraft within the limit means that the bank approves an overdraft limit for customers in its bank account according to their credit status and mortgage/guarantee situation, allowing customers to overdraw within the limit according to their capital needs, and can automatically offset the overdraft balance with sales income in normal operations. The combination of deposit and loan of domestic banks belongs to international trade of overdraft financing.
Overdraft within the limit If the customer needs to transfer a sum of money to China after receiving the goods according to the trade contract, it is not necessary to apply for a loan from the bank two weeks or one week in advance if the account has no money or insufficient funds, just submit a check to purchase foreign exchange, and remit it on the remittance day after going through the relevant remittance procedures. But at present, domestic banks rarely use this financing method, mainly because it actually reduces the profitability of banks. In the long run, with the increasing competition in China's service industry, it is an inevitable trend for banks to reduce their profit margins.
Four, import payment and false forward letter of credit financing
The so-called import agent payment means that the issuing bank signs the Agent Payment Agreement under Import Letter of Credit with the applicant according to the financing agreement signed with foreign banks (mostly their overseas branches) before opening the letter of credit, and then releases the documents to the unit with the trust receipt submitted by the applicant and telegrams the foreign banks to pay. The applicant pays the principal and interest paid by the agent on the due date.
A false usance letter of credit is issued by the issuing bank, stipulating that the draft is usance, but the issuing bank/paying bank will pay at sight, and the discount fee will be borne by the applicant.
Compared with imported bills of lading, the above two financing methods have the same meaning to importers and similar operating procedures. Before opening a letter of credit, the issuing bank and the applicant sign relevant agreements. After receiving the money, the applicant will change the trust receipt into documents, pick up the goods at the appointed time and return the principal and interest. The difference lies in: different sources of funds; Knowledge of foreign trade with different types of letters of credit and interest rates.
The risks brought by import agent payment and false forward L/C financing to the issuing bank are in three aspects: the applicant's credit status, the issuing bank's mortgage/guarantee status and the monitoring level of imported goods. If it is under the comprehensive credit, and the exporter is a world-renowned company, and the imported goods are marketable, then the risk of the issuing bank is very small and the income is rich.
Verb (abbreviation of verb) Bills under export collection and export factoring.
Export collection bill refers to the financing method that the exporter who adopts the collection settlement method submits the documents, entrusts the bank to collect the payment from the importer, and at the same time requires the collecting bank to pay part or all of the payment in advance, and return the bank advance payment after receiving the collection payment.
Export factoring bill refers to the financing method that the bank provides the exporter with funds not exceeding 80% of the invoice amount in advance when the exporter delivers the goods, and after obtaining the credit line of the import factor, submits the invoice and related documents to the export factor (bank) for collection.
Discount under export credit belongs to bank credit. As long as the bank that accepts the bill is strong and has good credit standing, there is basically no risk. The problem is how to deal with bills accepted by small and medium-sized banks or banks in economically unstable areas and areas with little contact with China. According to practical experience, there are three modes of operation: first, exporters with good reputation and strong strength can be handled within the framework of comprehensive credit, and the scale can be appropriately controlled. Second, strive for exporters to apply for export credit insurance and apply for export discount under export credit insurance. Third, large overseas banks can buy out long-term bills without recourse. Although the discount rate is LIBOR+0.5-3%, it may be a little higher, but the export bank will get some benefits, and the exporter will raise funds in time, so it is a feasible foreign trade.
Discount under export collection, like draft under export collection, belongs to commercial credit, and the risk is far greater than discount under export letter of credit. The things to be done in business operation are consistent with the five aspects to be paid attention to under export collection and export factoring, and the first four are trade.
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