What do you expect from an L/C advising service?

Speed and reliability are what makes our L/C advising stand out, supported by our links with the Bank of China in the mainland and our worldwide correspondent banking coverage. Simply ask your buyer to choose Bank of China (Hong Kong) as the L/C advising bank to benefit from our quality and professional service.

What can you do if you are worried about the financial standing or the country/region risk of the L/C issuing bank?

If you are doubtful about the financial standing or the country risk of the L/C issuing bank, you may request your buyers to insert the term "Add Confirmation" in the L/Cs advised by us. In so doing, we may add our confirmation on it and share the same responsibilities and obligations as the L/C issuing bank.

As a middleman, how can you settle an L/C without credit facilities?

A Transfer L/C is an ideal solution. You can wholly or partially transfer the L/C to your suppliers at your request, provided the L/C is "transferable". Under such circumstances, the name of the buyer and that of the supplier must be disclosed.

There are two types of transfer L/Cs:

Fully Transferable
The L/C is fully transferred to the second beneficiary (supplier) from the first beneficiary (middleman) without any alteration of terms.

Partially Transferable
This L/C enables the first beneficiary (middleman) to substitute the draft and invoice submitted by the secondary beneficiary (supplier) and gain from a spread in the value exchanged. The transfer must be made under the same terms and conditions stated in the original L/C with exclusion of the following: amount, unit price, expiry date, presentation period and shipment date.

What payment method is simpler than an open account or a L/C?

With our "Export Bills for Collection" service, you simply present your documents to us and we will send them to your buyer's banker in a timely manner. Documents will be released to your buyer upon payment or against acceptance.

There are two types of export bills for collection:

Documents against payment (D/P), where the presenting bank releases the documents to the buyer only against a cash payment in a prescribed currency; and

Documents against acceptance (D/A), where the presenting bank releases the documents to the buyer against acceptance of a bill of exchange (draft) guaranteeing payment at a later date.
 

Do you need working capital once the goods have been shipped?

When you present the documents to us for collection, we can provide you with a cash advance against your export bills so you can meet your cash flow requirements.

How can you expedite the processing of your export bills under L/C for collection?

When you present documents for collection, we provide Document Checking Services upon your request so you can avoid unnecessary discrepancies which may result in delayed payment or non-payment.

With our export collection services, you can benefit from our extensive correspondent network in the Mainland of China and overseas to speed up payments to you and reduce your expenses.

Do you need to obtain financing upon presentation of the L/C documents?

Upon receipt of your export documents, we will advance the bill if the documents are in full compliance with the terms and conditions of the L/C. If discrepancies are found, we can still provide financing "under reserve" .

Why do you need pre-shipment financing?

You may need pre-shipment financing to settle production costs, such as that incurred to buy raw materials and pay shipping or manufacturing fees. You might want to consider taking up our packing loan facilities against the security of the L/C.

Do you need extra financial support upon receipt of Purchase Order?

Upon presentation of the Purchase Order or Sales Contract, your company can apply for our "Pre-shipment Financing" for procurement of raw materials and payment of overhead expenses. After shipment of goods, you may flexibly opt to repay the loan with "Export Invoice Discounting", "Export Bills Advance" or "Negotiation/Discount of Export Bills Under L/C" and the like.

How can you obtain financing for an open account?

After delivering the goods to your buyer, we can provide you with a short-term loan against your invoice and evidence of delivery of goods.