Import letter of credit bill advance business is the import bill bill business under the letter of credit issued by the bank. So how much do you know about import bills? The following is the content I compiled about what import bills are. I hope you like it!

Introduction to import bills

Because importers By opening a credit guarantee file, the payment period can be extended. It is not necessary to pay the price before the exporter ships the goods. Even after the exporter ships the goods, the payment obligation must be waited until the documents arrive in one's hands. In this way, importers reduce the time that funds are tied up. The exporter's willingness to accept this extended payment term is conditional on the issuing bank's guarantee of payment upon maturity. Therefore, import advance is a kind of financial accommodation provided by the issuing bank to the importer.

The specific content of import bill advance

Business types

1. Bill bill against letter of credit documents:

The importer shall pay the bill according to the letter of credit. According to the requirements, the various documents listed on the letter of credit and the letter of credit are handed over to the bank for short-term borrowing. In fact, the documents of the letter of credit are pledged to the bank.

2. Advance letter of credit acceptance

The importer’s usance letter of credit business requires an acceptance notice from the issuing bank, and the importer uses the acceptance notice of the usance letter of credit. , apply for a short-term loan from the bank.

3. Discounting of usance bank acceptance bills

Short-term borrowing using usance bank acceptance bills as collateral. The importer has received a usance bank draft. This draft has been accepted by the bank but has not yet expired. The importer can use this draft as collateral to the bank for borrowing money.

Items and conditions

1. Items:

If the enterprise ***applicant*** uses the bank's credit line to issue a letter of credit, because When the documents are consistent and it is necessary to bear the responsibility for external payment, if it is indeed impossible to raise payment funds before the specified payment date due to temporary difficulties in capital turnover and other reasons, you can apply to the bank for import bill after receiving the bank's due payment notice.

2. Conditions:

1. The enterprise should have independent legal personality, have a good business style, and have no bad records such as violations, violations, and breach of contract;

2 , Enterprises must have a foreign exchange or RMB basic account or current account in a bank, maintain regular settlement transactions, and have a good reputation;

3. Enterprises should have a complete financial management system and production and sales network, and have imported goods Normal and reasonable sales channels and reliable sources of funds can repay the bank's advance funds on time;

4. The company's financial status is good and it has the ability to pay short-term debts. If necessary, the company should provide the bank with An approved loan guarantee or mortgage.

Interest rate period

The currency of the import bill is the payment currency. The interest rate of the import bill shall refer to the bank’s working capital loan interest rate for the same period. The period starts from the date of each external payment and ends on the date of return of the advance, and in principle shall not exceed three months.

Advantages

Reduce capital occupancy - you continue to make import bills after handling import certificate issuance and import collection, which is equivalent to fully utilizing the bank's credit and funds to import goods. and domestic sales, you can complete trade and earn profits without occupying any funds;

Seize the market opportunity - when you are unable to pay the redemption order immediately, import bill can make it possible to make the payment without paying the price. Obtain property documents, pick up the goods, and resell them under the conditions to seize market opportunities;

Optimize fund management - if you encounter better investment opportunities when payment is due, and the investment is expected The rate of return is higher than the interest cost of trade financing. The use of import bill can not only ensure the normal purchase and resale of goods, but also earn investment income at the same time, maximizing the efficiency of capital use.

Choose the opportunity

1. Insufficient liquidity, unable to pay redemption orders on time, and imported goods are in rising prices;

2. There are other investment opportunities, and The expected return on the investment is higher than the bill interest rate.

Notes on import bill advance

1. A written application for import bill bill must be submitted to the issuing bank or designated collecting bank;

2. In custody The bank has approved the credit limit or applied for a single credit;

3. Sign a formal bill advance agreement with the bank to determine the amount, term, interest rate, repayment date, etc.;

4 , Keep an eye on the market interest rates of RMB and foreign exchange payment currencies at any time, and choose the bill bill currency with the lowest financing cost;

5. Import bill bill is a kind of special financing and can only be used to fulfill external obligations under specific trade items. Payment responsibility;

6. The term of the bill advance generally matches the time limit for resale of the imported goods, and the proceeds from sales are used as the main source of repayment of the bill.

Contents of import bill