Other Services

From our wide range of special auxiliary trade services, please select the one that suits your needs.

Guarantee or Bond

If your customers are concerned about the credit risks (such as non-payment, non-delivery of goods, warranty, etc.), what can you do?

We can issue different types of Guarantees or Bonds to suit your needs. A guarantee or bond states that you will comply with the terms of the contract / agreement with your customers, otherwise your customers will be compensated .

Four types of Guarantee or Bond:

  • Bid Bond
  • Performance Bond
  • Advance Payment Guarantee or Down Payment Guarantee
  • Payment Guarantee
     

What is a Standby Letter of Credit?

A Standby L/C is a guarantee to the beneficiary against defaults by the applicant in the performance of his commitment. It is often used in lieu of a performance guarantee; for example, to help another company obtain credit.

Forfaiting

When is Forfaiting used?

When you want to eliminate the risk of the issuing bank running into financial difficulties, exchange controls or political problems in the importer's country/region, our forfaiting (non-recourse discounting for the bills under usance L/C) financing services can help. By simply providing us with the receipt of conditional acceptance and due date for the payment by the L/C issuing bank, we can provide you with liquidity so your payment is secured.

A fixed interest rate reduces your exposure to interest rate or foreign exchange risks and is another core feature of forfaiting. Except in the case of fraud or court injunction, we will not claim back the payment made to exporters.

Factoring

How do you turn your accounts receivable into cash faster?

With the growing trend to use open account terms, instead of L/C, as a settlement method for international trade, Bank of China (Hong Kong) offers a flexible solution for suppliers who are eager to build favourable relationship with their customers.

Bank of China (Hong Kong), as a member of the Factors Chain International (FCI), provides one-stop Factoring Services to meet your accounts receivable needs. Subject to a pre-agreed percentage of the approved invoice value, you can turn your accounts receivable into cash, without providing additional collaterals.

Factoring also provides the following benefits:

Credit Risk Protection
We provide you with the credit risk protection for sales covered by an agreed credit line, when the buyer goes bankrupt, closes business or fails to effect payment.

Collection Services
We (or our correspondent) will remind your buyers to pay on time, thus reducing your burden of debt collection.

Flexible Financing
Payment from your buyer is treated as the 1st source of repayment. We provide you with the services including buyer's credit assessment, credit protection, ledger management and debt collection. In addition to your existing banking facilities, we provide you with another source of financing to facilitate your cash flows.

Assessment of Buyer's Credit
In conjunction with our correspondent, we can carry out extensive credit checks on your buyers, allowing you to focus on developing your business.

For any enquiries about Factoring, please call our Trade Services Centre at +852 3988 2288 or e-mail: trade_products@bochk.com.

Foreign Exchange Services

How do you minimize foreign exchange risks?

One of the uncertainties of international trade lies in the fluctuating exchange rates between currencies. If you are not properly protected, foreign currency fluctuations can lead to great loss. To help mitigate your foreign exchange risks, we offer you Spot / Forward Foreign Exchange services.

 

eTradeConnect

eTradeConnect is an innovative trade platform facilitated by Hong Kong Monetary Authority and initiated by Bank of China (Hong Kong) and other banks in Hong Kong. The platform is operated by Hong Kong Trade Finance Platform Company Limited (“Platform Service Provider”). Through the digitalization of trade and with the use of distributed ledger technology (DLT), eTradeConnect enhances transaction efficiency, transparency and reduces risks.

Platform Features:

  • Online trade document processing
  • Real-time document delivery and status update
  • Automatic matching of trade data
  • Reports, alerts and notifications
  • Online trade finance request


As our valuable customer, you may now apply and use eTradeConnect services for free1. Please contact our Relationship Manager for details.

For further enquiry, please visit eTradeConnect website (https://www.etradeconnect.net).

 

General terms:

  1. From now on, our corporate customers can apply the invitation code from us for free. The invitation code is for registration purpose on eTradeConnect. Platform Service Provider may have other charges. For details, please contact Platform Service Provider for enquiry.
  2. The above products and services of eTradeConnect (“the Platform”) are provided by third party institution “Hong Kong Trade Finance Platform Company Limited” (“Platform Service Provider”). Bank of China (Hong Kong) Limited (“the Bank”) does not assume any responsibility or liability, regarding the availability, adequacy, functionality, performance, timeliness, integrity, security or any other aspects of the Platform or any Platform Service Provider.
  3. The Bank reserves the right to amend, suspend or terminate the products and services related to the above products and services and to amend the relevant terms at any time at its sole discretion.
  4. In case of any dispute, the decision of the Bank shall be final.
  5. Should there be any discrepancy between the Chinese and English versions of this web page, the Chinese version shall prevail.

 

Supply Chain Solution

With buyer acting as anchor of the supply chain, our bank designs a total solution for the chain, which aims at providing a one-stop and comprehensive financial solution in consideration of the creditworthiness and funding needs of different stakeholders in the chain.

As a Buyer:

Leveraging your good creditworthiness, our bank can help your suppliers to enhance their cash flow by purchasing their receivables under your accepted invoice or draft which proves your irrevocable payment obligation.

As a Supplier:

Enhancing your cash flow at a lower cost can be achieved without the need to provide financial statement to us or even without a bank account with us.

Our Trade Services Centre is located at 9/F Bank of China Centre, Olympian City, 11 Hoi Fai Road, West Kowloon Hong Kong (Business hotline: (852) 3988 2288).

 

Reminder: To borrow or not to borrow? Borrow only if you can repay!