胡志明分行 > Ho Chi minh Home Page > Products & Services

Trust Receipt Loan

Packing Loan

Export Negotiation

Bill Discount Under Usance L/C

Export Collection

Forfaiting

Purchase Order Financing

Trade Finance Under Structured Deferred Payment Guarantee

Trust Receipt Loan

Trust receipt loan means a short term trade financing offered by the bank to corporate customers upon its application for outward payment on the due date of the import letter of credit, imports on cash on delivery (T/T) or import collection. As the one of the pre-conditions of loan advance, a Trust Receipt (TR) shall be issued by the customer to the bank, warranting that the customer agrees to deliver to or grant the title of documents under the above LC or contract to the bank, and the bank has all the rights to dispose the goods or title documents in case of non-repayment on maturity date.

Packing Loan

Packing loan means a short-term trade financing offered by the bank to the corporate customer who meanwhile is the beneficiary of the letter of credit, by paying the customer upon its application an specialized loan in an amount equal to a proportion of the LC amount before the shipment, to facilitate the purchase of raw material, manufacture, warehousing and transportation of the export products. After shipment, when the customer presents the documents required by the LC through the bank for payment, the bank will be entitled to use the reimbursement from the issuing bank or its nominated bank as the first resource to repay the loan.

Export Negotiation

Export Negotiation means the trade financing as described below: the bank purchases the draft and/or documents under a letter of credit by paying the corporate customer upon its application an amount equal to a proportion of the draft or documents amount under LC prior to the banking date when customer is entitled to receive reimbursement from the issuing bank or its nominated bank. Nonetheless the bank will reserve the rights of recourse and is entitled to claim back from customer the principal, interest of the advance payment and related expenses. 

 

Export Documents Financing means trade financing as described below: the bank provides the corporate customer upon its application a short-term loan in an amount equal to a specific proportion of the draft or discrepant documents amount under the LC, and the amount collected in respect of the export documents under such LC shall be applied first to pay back the principal, interest and relevant expenses of the loan. 

Bill Discount Under Usance L/C

Bill Discount under usance L/C means trade financing as describe below: the bank, after the acceptance of the bill under a usance L/C by the issuing bank or confirming bank or other nominated bank (the ==="accepting bank") , discounts with recourse such bill upon the corporate customer’s application.  

 

Accounts Receivable Purchase under the usance L/C means trade financing as describe below: the bank, after the confirmation of the due date under a deferred payment L/C by the issuing bank or confirming bank or other nominated bank (the ==="honoring bank") purchases with recourse the accounts receivable under such deferred payment L/C upon the corporate customer’s application.

Export Collection

Export Collection loan means trade financing as described below: the bank, while conducting export documentary collection for and upon the application of the corporate customer, offers a loan in an amount equal to a proportion of the accounts receivable under such export collection, and the proceeds received under such export collection shall be first applied to pay off the principal and interest of the loan. 

Forfaiting

Forfaiting referred means trade financing as describe below: the bank, after the acceptance of the debt instruments (including but not limited to usance bills, promissory notes or the accounts receivable) by the issuing bank, confirming bank or other nominated bank (the ==="accepting bank" or the ==="honoring bank") , purchases such debt instruments without recourse against any previous holder of debt instruments due to mature in the future and arising from the provision of goods and services upon the corporate customer’s application, EXCEPT for the unlawful or fraudulent transactions, falsified bills or documents by the corporate customer.

Purchase Order Financing

Purchase Order Financing means trade financing as described below: the bank offers the corporate customer a short-term financing usually less than one year against the purchase order or export contract which the payment will be made by terms of open account (O/A), T/T after shipment or export collection (D/A or D/P) , by paying the customer upon its application an amount equal to a proportion of the total value indicated in the purchase order before the shipment for purpose of the preparation, production, transportation and exports of the goods. After the shipment, all the proceeds hereunder shall be settled through the account opened with the bank, and upon receipt of the payment under the purchase order such proceeds must be used as the first resource to repay the financing.

Trade Finance Under Structured Deferred Payment Guarantee

Trade finance under Structured Deferred Payment Guarantee means trade financing as described below: upon a Structured Deferred Payment Guarantee issued by another bank, for example CCB domestic branches, in favor of the customer and restrictively transferred to the bank, after assignment of the rights of accounts receivables, the bank offers the customer (exporter) upon its application a short-term loan in an amount equal to a proportion of the accounts receivable under export collection, and the proceeds received under such export collection shall be first applied to pay off the principal and interest of the loan.

 

Bank’s Aval under Usance Draft means trade financing as described below: at the request of corporate customer (importer), the bank offers the customer a form of bank’s guarantee on the credit standing and solvency, which happens when the exporter is in doubt of the creditability of importer for international trade to be settled by D/A. In so doing, after the usance drafts or bills of exchange are accepted by the bank, an endorsement with the words ==="PER AVAL" or ==="GUARANTEED PER AVAL" is signed, stamped or written directly onto drafts by the bank or its authorized signatories, which represents an irrevocable responsibility of the bank as guarantor.

 

Trade finance under Bank’s Aval means trade financing as described below: upon Usance Draft under D/P is accepted and guaranteed by another bank, for example CCB domestic branches, the bank offers the corporate customer upon its application a short-term loan in an amount equal to a proportion of the accounts receivable under such export collection, and the proceeds received under such export collection shall be first applied to pay off the principal and interest of the loan.