Conditions for handling "buyer's credit for export to the public":
1, and the total amount of commercial contracts is generally not less than 1 ten thousand dollars;
2. The value of domestic export goods should generally account for more than 70% in commercial contracts for complete sets of equipment, and more than 50% in commercial contracts for the import and export of ships and aircraft. Otherwise, the proportion of loan amount to the total price of commercial contracts should be appropriately reduced;
3. In principle, the spot proportion paid by the importer in cash shall be no less than 20% of the total contract price for ships and no less than 65,438+05% of the total contract price for complete sets of equipment and other mechanical and electrical products;
4. The signed business contract must comply with the relevant laws and regulations of the governments of both parties to the transaction;
5. Export enterprises must apply for export buyer's credit insurance in export credit insurance institutions;
6. Other conditions required by China Bank.
Please consult the local branch of Bank of China for details.
The above contents are for your reference. Please refer to the actual business regulations.
Main types of export credit
Export credit plays an important role in the export trade and national economic development of providing countries. It not only has the function of supporting and expanding the commodity export of the provider country, but also can be used by the provider country government to improve and improve its export commodity structure. Below I will solve the main types of export credit for you, hoping to help you.
Main types of export credit
Before World War II, export credit mostly used outward loans, inward loans and discounted bills. These methods are still in use after World War II, but in contemporary times, the most important and common is buyer's credit, in addition, there are seller's credit, forfaiting, credit arrangement limit, mixed credit and so on.
(1) Buyer's credit
Buyer's credit refers to the credit provided by the bank of the exporting country or other financial institutions directly to the importer or importer's bank by signing a loan contract. The credit line is generally 85% of the contract amount, and the remaining 15% is the down payment. Down payment 10% at the time of signing the contract and 5% at the time of first delivery. The loan amount is paid by the exporter's bank to the exporter according to the delivery process, that is, the loan provided by the exporter's bank to the importer or the importer's bank.
The importer or the importer's bank will repay the loan and interest of the exporter's bank in installments within a certain period of time when all the ordered equipment is paid, usually once every six months, and pay interest at the same time. The reason why the exporter's bank issues such buyer's credit is mainly to support the export of complete sets of equipment. Buyer's credit is suitable for large, complex and long-term loans.
For example, a large number of capital goods, equipment and complete design projects are exported on long-term credit terms. Buyer's credit has the following main features:
1) For the buyer's credit export, two contracts need to be signed, one is the import and export contract signed by the buyer, and the other is the loan contract signed by the seller's bank and the buyer or the buyer's bank. The loan contract is based on the trade contract, but it is independent of the trade contract. Therefore, the procedure of buyer's credit is more complicated than that of seller's credit.
2) There is a clear dividing line between business and finance. According to the arrangement of the buyer's credit, the export supplier is only responsible for the business, that is, providing high-quality products, ensuring timely delivery, successfully completing the factory building and assembly tasks (if this is the task stipulated in the contract), ensuring the normal operation of the equipment, providing guarantees and so on. Once the supplier meets these requirements, it has no other responsibilities. Because the financial arrangement stipulated in the contract is the responsibility of the financial institution that provides the buyer's credit, that is, the exporter's bank.
3) Although buyer's credit stipulates that banks in exporting countries provide loans to foreign buyers or their banks, it is not allowed to transfer funds from exporting countries to importing countries. The function of the export bank is to pay the goods to the export suppliers according to the instructions of the buyer (or borrower) and the delivery documents. This amount is the credit provided to the buyer in the loan contract, and the buyer will repay the loan according to the repayment date.
② Buyer's credit rules
Because the buyer's credit is mainly to promote the export of large-scale machinery and equipment, the transaction amount is huge and the cycle is long, so both parties involved in the trade are particularly cautious and have established a series of rules that both parties must abide by or mutually recognize through agreements and other means. These laws are generally as follows: 1) The credit interest rate is lower than the market capital interest rate.
2) As an importer, after accepting the loan, you can only use the money to buy the products of the exporters (or exporters, and foreign export companies registered in that country) of the lending country, and you can't use them in a third country to prevent the benefits brought by low interest rates from "going abroad".
3) The buyer's credit line obtained by importers can only be limited to importing "capital goods" such as single machines, complete sets of equipment and related services, and generally cannot import raw materials or consumer goods.
4) The capital goods provided by the exporting country are limited to the goods produced in that country.
5) The loan only provides 85% of the trade contract amount;
6) Repayment of loans by installments is generally stipulated to repay the principal and interest once every six months.
③ Loan conditions of buyer's credit.
Under the above-mentioned buyer's credit rules, both parties to the transaction negotiate various loan terms. The loan conditions involved in the buyer's credit business generally include the following aspects:
1) Currency used for buyer's credit.
2) The starting point of applying for buyer's credit is the minimum amount of capital goods that must be purchased to use buyer's credit, and the buyer's credit cannot be used below this amount.
3) The interest rate and interest calculation method of the buyer's credit. Although the buyer's credit interest rate is generally lower than the market interest rate, the different terms of trade in different countries also make the interest rate and interest calculation methods in the buyer's credit business different, which can be roughly divided into four categories. One is the type of interest rate in countries of the Organization for Economic Cooperation and Development. The countries of this organization divide the countries in the world into low-income countries, middle-income countries and rich countries according to different economic incomes, and set different interest rates for different countries according to different repayment periods. The interest rate is adjusted every six months according to the change of market interest rate. The other is the London Interbank Offered Rate (LIBOR), which is higher than the first one. The third one is from Canada, which was set by the Canadian government. Generally higher than the first category and lower than the second category. The last one is American. The buyer's credit granted by the United States comes from two parts. Part of it is provided by The Export-Import Bank of China, which charges lower interest, and the other part is provided by commercial banks, which charges interest in the American market. The number of days to calculate interest varies from country to country. For example, in some countries, the interest on 1 year borrowing dollars is calculated as 360 days, and the interest on 1 year borrowing French francs is calculated as 365 days. The international common interest-bearing time is "counting the head, not counting the tail", that is, interest is calculated on the day of loan, not counting the day of repayment.
4) The use period and repayment period of the buyer's credit. The term of use refers to the period when the total amount stipulated in the general agreement should go through the specific application procedures and sign a loan agreement separately. Reimbursement depends on the nature and quantity of imported equipment. For example, a single machine will start to repay in installments 6 months after delivery. Some countries stipulate that the repayment of complete sets of equipment will start six months after basic delivery or final delivery, some stipulate that repayment will start six months after handover and acceptance, and some also stipulate that repayment will start six months after the warranty period expires. In addition, the loan conditions also involve various expenses of the buyer's credit, such as management fees and commitment fees.
(2) Seller's credit
The seller's credit bank provides credit to domestic exporters, and then the exporters provide deferred payment credit to foreign buyers who sell their goods. Banks provide bank credit to exporters, while exporters provide commercial credit to foreign buyers. According to the seller's credit arrangement, the exporter will obtain the post-shipment letter of credit from his agent bank with the export documents after shipment, so as to compensate his liquidity, and the bank will collect the payment from foreign buyers on schedule (once or by stages) instead of the exporter. During this period, the exporter shall bear the interest of the letter of credit to the bank after shipment. If something goes wrong and the payment cannot be received from abroad, the bank reserves the right to recourse against the exporter, and the exporter will still bear the amount paid by the bank or the outstanding balance of the foreign buyer. Therefore, from the actual responsibility of credit risk, seller's credit is still a deferred payment credit provided by exporters to foreign buyers, which basically belongs to commercial credit. The interest on the seller's credit is borne by the exporter, and most of the loans can only be repaid after full delivery. Therefore, considering the burden of loan interest and other expenses, exporters should quote higher prices for goods. In international trade, part of export credit exists in the form of seller's credit.
(3) Forfaiting
Forfaiting is a relatively new financing method. Mainly used for large-scale equipment trade with deferred payment.
Forfaiting refers to the purchase of debts due at a future date due to the transfer of goods and services (mainly exchanges), and there is no recourse to the original holder. It is a financing method for exporters to discount long-term non-recourse bills accepted by importers for more than half a year to five or six years to banks or big financial companies where exporters are located in order to obtain funds in advance. Forfaiting market originated from the late 1950s to the early 1960s, when the world economic structure changed. The benefits of this financing method to exporters mainly include:
① Reduce the contingent liabilities on the balance sheet and enhance the liquidity of funds (these two items indicate that the exporter's borrowing ability is enhanced);
(2) Avoid the possible losses caused by only investing in the state or the private sector, and there will be no capital flow problems (these problems are inevitable during the unexpired period of the insured creditor's rights);
③ There are no credit management and collection problems and related risks and expenses.
(4) credit arrangement limit
That is, in order to expand the export of domestic general consumer goods or basic projects, the exporter's bank gives the importer's bank the convenience of medium-term financing and cooperates with the importer's bank to organize smaller commercial transactions.
Characteristics of export credit
Lower interest rate
The interest rate of long-term foreign trade credit is generally lower than the market interest rate of capital borrowing under the same conditions, and the spread is subsidized by the state. Large-scale machinery and equipment manufacturing industry plays an important role in the economy of western countries, and its product value and transaction amount are huge. In order to strengthen the competitiveness of domestic equipment and weaken competitors, banks in many countries compete to provide medium-and long-term loans to foreign importers or exporters at lower interest rates than the market, that is, to give credit support to expand the foreign sales of domestic capital goods. The difference between low-interest loans provided by banks and market interest rates is subsidized by the state.
Combined with credit insurance
Due to the long repayment period and large amount of medium and long-term foreign trade credit, the banks that issue loans are risky. In order to alleviate the worries of banks in exporting countries and ensure the safe issuance of their loan funds, countries generally have credit insurance institutions to guarantee the medium and long-term loans issued by banks.
Managed by a specialized agency.
The medium and long-term foreign trade credit provided by developed countries is generally issued directly by commercial banks. If commercial banks are short of funds because of the huge amount, they will be supported by export credit institutions specially established by the state. In many countries, long-term loans for certain types of foreign trade are paid directly by export credit institutions. Its advantage is that the use of state funds to support long-term foreign trade credit can make up for the lack of funds of private commercial banks, improve the export credit conditions of the country, and strengthen the power of exporters to seize foreign sales markets.
Characteristics of export credit
1. The designated purpose of the loan is that the funds obtained through export credit can only be used to purchase capital goods, technologies and related services exported by the lending country.
2. The interest rate is low, and the export credit interest rate is lower than the loan interest rate in the international financial market.
3. The issuance of export credit is combined with credit insurance.
4. The loan term is medium and long term, generally 1~5 years, some of which are as long as 10 years, and the principal and interest are generally repaid once every six months.
5. The starting point of the loan amount is relatively large, with 50,000 US dollars in China, 6,543.8+0,000 German marks in Germany and 3 million US dollars in Italy.
What are the conditions for handling export seller's credit?
Conditions for handling export seller's credit:
1. The exporter must have the legal person status, have the right to import and export business or be a production enterprise approved by the state to export mechanical and electrical products.
2. The borrowing enterprise has normal operation and management, good financial and credit status, ability to perform export contracts, ability to implement reliable repayment guarantee, and open an account with China Bank.
3. The export project conforms to the relevant national policies and the legitimate business scope of the enterprise, and has been approved by the relevant departments and holds a valid contract.
4. Export projects have good economic benefits, reasonable exchange costs and the implementation of various supporting conditions.
5. The commercial terms of this contract shall be approved by the Bank of China before signing this contract.
6. The importer has a reliable reputation and can provide foreign bank payment guarantee or other payment guarantee recognized by China Bank.
7. In principle, export contracts should be covered by export credit insurance.
8. In principle, the borrowing enterprise shall provide repayment guarantee recognized by China Bank.
9. If the borrower applies for foreign exchange loans, it must implement the corresponding sources of foreign exchange repayment.
The above contents are for your reference. Please refer to the actual business regulations.
Interpretation of export credit terms
This is a way of international credit.
In order to support the export of domestic products and strengthen international competition, the state gives interest subsidies and guarantees to domestic products, and isolates domestic commercial banks from providing ide loans with slightly lower market interest rates to domestic exporters or foreign importers to meet the needs of buyers to pay for imported goods.
What are the advantages of export loans? Mainly the following three points!
Affected by the epidemic this year, many people turned their eyes overseas. There are many export credit services in the market now. This kind of export loan has many advantages. Today, we will briefly introduce it.
1, favorable loan interest rate.
At present, the interest rate of export loans is supported by the state. In order to increase competitiveness, banks often provide medium and long-term loans to foreign importers or exporters at interest rates lower than the market, that is, give credit support. The main purpose is to expand sales and increase foreign share. There is a gap between the bank interest rate and the market interest rate, which is generally subsidized by the state.
Loan interest rate concessions are aimed at different industries. Small and micro enterprises can consult banks to see if they meet the requirements in this respect before making relevant applications.
2, combined with credit insurance
Export loans are generally provided by specialized credit insurance institutions, which will guarantee the medium and long-term loans issued by banks, which is also to ensure the safety of loans. Because the term of export loans is often relatively long and the amount is relatively high, the risk of being affected by market changes is relatively large. In order to solve the worries of national banks, the state will introduce relevant policies.
3, managed by specialized agencies.
Export credit is generally issued directly by commercial banks, and sometimes when the loan amount is too high and the commercial banks are short of funds, it is supported by export credit institutions specially established by the state. In many countries, long-term loans for certain types of foreign trade are paid directly by export credit institutions. Its advantage is that the use of state funds to support long-term foreign trade credit can make up for the lack of funds of private commercial banks, improve export credit conditions and enhance exporters' power to seize foreign sales markets.
What are the conditions for exporting buyer's credit?
Conditions for handling export buyer's credit:
1, and the total amount of commercial contracts is generally not less than USD 4 million;
2. Requirements for the proportion of parts in China: the proportion of China parts (the value-added part of exported goods in China) in equipment export and foreign engineering contracting contracts should generally not be less than 60% and 35% respectively, and the proportion of China parts in high-tech and high-value-added ships and offshore engineering should generally not be less than 40%;
3. The business contract signed under the loan must comply with the laws, regulations and regulatory provisions of the countries of both parties to the transaction;
4. Export enterprises must apply for export buyer's credit insurance in export credit insurance institutions;
5. Other conditions required by China Bank.
The above contents are for your reference. Please refer to the actual business regulations.