A binding loan refers to a buyer's credit. Buyer's Credit. The exporter's bank provides a loan directly to the importer, and the contract signed between the exporter and the importer stipulates that the payment method is sight. The exporting bank will pay the payment to the exporter based on the delivery documents provided by the exporter in accordance with the contract. At the same time, it will be credited to the importer's repayment account, and then the importer will successively repay the borrowed money to the exporter's bank according to the payment time agreed with the bank, and pay interest.

There are two types of buyer's credit provided by domestic banks in my country. One is a loan provided to support domestic enterprises in introducing technology and equipment from abroad. This kind of loan is customarily called an import buyer's credit; One is a loan provided to support the export of domestic products such as ships and mechanical and electrical equipment. This kind of loan is called export buyer's credit. The interest rates, terms, repayment terms, etc. of these two types of buyer's credit are different.

There are two forms of import buyer's credit: one is that the bank in the exporter's country provides a total loan line to the bank in the importer's country and signs a general credit agreement, stipulating the total Credit Principles. When an importer wants to import technical equipment but lacks funds and needs financing, he can submit an export credit request to a domestic bank. After the bank reviews and agrees, he will go through the specific procedures for using buyer's credit with the bank in the exporter's country in accordance with the provisions of the general credit agreement. The other is that there is no need to sign a general credit agreement. Instead, when the importer and exporter sign the import and export business contract, the bank of the exporter's country and the importer's country sign a corresponding credit agreement, clarifying that the loan for imported goods shall be provided by the domestic bank. The bank pays from the loan provided by the exporting country's bank, and the domestic bank is responsible for repaying the loan when it matures.