When the exporter receives the letter of credit, due to the shortage of funds, after the goods are loaded, he will hand over the full set of documents required by the letter of credit to the bank and ask the bank to pay immediately according to the amount of the letter of credit, so that the exporter can obtain short-term capital turnover.

Two. Types of export bills

1. l/c documents

According to the requirements of the letter of credit, the exporter submits the letter of credit and various documents listed in the letter of credit to the bank for short-term loans, which are actually mortgaged to the bank with the documents of the letter of credit.

2. Bills accepted by usance letters of credit

The exporter's long-term letter of credit business is notified by the issuing bank, and the exporter applies to the bank for short-term loans by using the acceptance notice of the long-term letter of credit.

3. Discount of long-term bank acceptance bills

Short-term loans secured by long-term bank acceptance bills. The exporter got a long-term bank draft, which has been accepted by the bank but has not yet expired. Exporters can use this draft to mortgage loans to banks.

Three. Operating procedures for export negotiation of letters of credit

1. Provide foreign exchange bill loan application to the bank. The application content includes the basic introduction of the enterprise, the financial status of the enterprise, the application amount and the application time limit.

2. Provide relevant information to the bank.

(1). Copy of the business license of the enterprise.

(2) Foreign trade contracts or agency agreements.

(3) the annual financial statements of the enterprise in the last three years and the latest financial statements.

(4) The bank applies for export negotiation (negotiation).

(5) Bank Export Bill Agreement.

(6) The original letter of credit and the amendment of the original letter of credit.

(7) A complete set of documents required by the letter of credit (including the amendment of the letter of credit).

3. Amount of export documentary credit

(1). The maximum bill amount is 90% of the bill amount. Generally, the method of withholding interest is adopted, that is, bill amount-bill interest.

(2) Negotiation interest of sight letter of credit = (negotiation amount × negotiation interest rate× negotiation days) /360 days.

(3) Negotiation interest of usance letter of credit = (negotiation amount × negotiation interest rate × negotiation days) × (acceptance payment date-negotiation value date) /360 days.

4. Conditions of negotiation

(1). The terms of sight letter of credit vary from country to country. Generally speaking, national terms are as follows:

15 days: Japan, Korea, Hong Kong, Macau, Singapore, Malaysia

20 days: Europe, USA, Canada, Australia, New Zealand

25 days: West Asian countries, Central and South America, Africa

30 days: other countries or regions

(2) After the usance letter of credit is accepted, the negotiation period starts from the negotiation value date to the acceptance payment date.

5. Negotiate the recovery of the payment and the return of the loan.

If there is a balance in the amount of agreed payment and returned bills, the bank will transfer the balance to the relevant account of the enterprise. If it takes longer for the bank to actually receive the negotiated payment than the negotiable instrument, the bank will recover the interest from the enterprise during this time.

6. Under the following circumstances, it will be restricted to handle export bills in banks.

(1). Letters of credit are no longer notified, paid (or accepted) and negotiated by the same bank. Therefore, it is best for enterprises to choose the same bank for notification payment (or acceptance) and negotiation.

(2) The letter of credit is revocable (or transferable). Therefore, enterprises should not require this type of letter of credit.

(3) This letter of credit has been used for mortgage. Mortgage loans include packaged loans.

(4) The application period of the draft exceeds 90 days. Therefore, the enterprise requires the other party to open a usance letter of credit within 90 days.

(5) A letter of credit is a letter of credit for payment. Therefore, enterprises should not ask for such a letter of credit.

(6) There are discrepancies in the documents under the letter of credit. Enterprises must make documents in accordance with the terms of the letter of credit.

(7) The effective place of the letter of credit is abroad. Therefore, the effective place of the required letter of credit is in China.

(8) The presentation period of the letter of credit is very close to the validity period. Therefore, on the one hand, the validity of the letter of credit is required to be longer, on the other hand, enterprises should seize the time to make documents.

(9) A usance letter of credit has sent documents, but it has not been accepted. Therefore, you can accept the usance letter of credit before you go to the bank to handle the export bill.

(10). The credit standing of the issuing bank is very poor. Therefore, some big banks should be selected to open letters of credit.

(1 1). The issuing bank's national political situation is unstable, foreign exchange control is strict, credit rating is low, and wars are frequent, so the issuing bank is in business crisis. Therefore, opening a letter of credit should also consider the national conditions of the country.

Import bill is a short-term financing facility provided by the issuing bank to the importer (applicant), that is, your enterprise (applicant) entrusts our bank to open a letter of credit under the condition that our bank has reduced the deposit, and when the documents meet the requirements of external payment, due to the temporary shortage of funds, your enterprise cannot pay the full payment funds to our bank. After the application to our bank is approved, our bank will reserve the right of recourse and pledge the right of goods to your enterprise. 1. Objects and conditions of import bill of exchange: 1. Objects: If your enterprise (applicant) uses our credit line to open a letter of credit, but it is really impossible to raise payment funds before the specified payment date due to difficulties in temporary capital turnover, you can apply for import bill of exchange from our bank after receiving our notice of payment due. Two. Conditions: If you want to apply for an import bill from our bank, you must meet the following conditions: 1 Your enterprise should have the qualification of an independent legal person, have a good business style, and have no bad records such as violation of rules, laws and breach of contract; 2. Your enterprise must open a foreign exchange or RMB basic deposit account or current account with our bank, and keep regular settlement, with good reputation; 3. Your enterprise should have perfect financial management system and production and sales network, normal and reasonable sales channels and reliable sources of funds for imported goods, and can repay our advance payment on schedule; Your enterprise is in good financial condition and has short-term solvency. If necessary, your enterprise should provide our bank with loan guarantee or mortgage recognized by our bank. Two. Currency, interest rate and term of import bill of exchange: the currency of import bill of exchange is the payment currency, and the interest rate of bill of exchange refers to the current working capital loan interest rate of our bank for the same period. The term of import bill of exchange shall be from the date of each foreign payment to the date of bill of exchange, which shall not exceed three months in principle. Three. Application for import bill: If you need to apply for import bill from our bank, you must fill in the application for import bill before the payment due date of the letter of credit, affix the official seal and sign it by the authorized signatory, and submit it to the branches of our bank or the Trade Section of the International Business Department of the head office; 1. If you need to apply for an import bill from our bank, you must fill in the application form for import bill before the payment due date of the letter of credit, affix the official seal and sign it by the authorized signatory, and submit it to the branches of our bank or the Trade Section of the International Business Department of the Head Office; 2. Your company should provide financial statements to our bank so that we can review your company's recent financial status and solvency. If you need to provide guarantee or mortgage, you need to provide the guarantor or collateral information to our bank, and our bank will review it according to the loan procedure. 3. After the approval of our bank, our bank will sign an import bill contract and a trust receipt with our bank to clarify the responsibilities and obligations of both parties.