The premise of bill financing is that the buyer and the seller already have a transaction contract, which has legal effect. Generally, sellers apply for financing from banks in order to relieve their financial pressure and avoid potential credit risks (buyers default, etc.). With bank financing, the seller can quickly put into new production, otherwise, even if there is an order in hand, there is no capital and raw materials for production. When the bank gets the trade slip, it will review the buyer's credit limit and business status, and then give the seller 80% or 90% of the transaction amount according to the specific information, and at the same time buy the seller's creditor's rights, and then the buyer will pay the bank directly.

According to the discount, your enterprise (the holder) transfers the rights of the bill to the bank in order to obtain funds before the maturity of the commercial bill, which is a way for the bank to finance the holder.

Bill discount must be based on real trade background; The discount period shall not exceed 6 months from the date of discount to the maturity date of the draft; The discount rate is determined by your company and our bank through consultation within the scope stipulated by the People's Bank of China.