Confirmation of letter of creditIt means that our bank assumes the first payment responsibility to the beneficiary independently of the issuing bank。
Product function
For exporters to bear the credit risk of the issuing bank, so that it can receive payment in advance under the conditions of complying with documents, there are two ways: open confirmation and silent confirmation。
Product characteristics
1.Reduce risk and speed up capital turnover。Confirmation of a letter of credit enables exporters to protect against the issuing bank's banking risks as well as the country risks and exchange control risks of the issuing bank's country。
2.Double warranty。In addition to obtaining the issuing bank's conditional payment commitment, the exporter has also obtained an additional conditional payment commitment from our bank, so that the exporter has a double payment guarantee。
3.Payment protection。Exporters can obtain payment or payment promise without recourse after submitting documents in accordance with the L/C to our bank。
Related expenses
2‰ of the confirmed amount, with a minimum of 500 yuan, will be charged quarterly。Can float according to the country, bank risk degree。
Applicable customer
1.The exporter wishes to obtain confirmation of payment from a bank other than the issuing bank;
2.Despite the good credit standing of the issuing bank, the exporter expects to receive non-recourse funds upon presentation of documents。
Application conditions
First, basic conditions
1.Approved and registered according to law, with the annual inspection of the legal person's business license or other valid documents to prove the legality and scope of its business;
2.Have a loan card;
3.Have an account opening license and open a settlement account with our bank;
4.With import and export business qualifications;
5.No bad credit history with our bank and/or other financial institutions。
The issuing bank is a financial institution with good credit standing approved by the head office。
Handling process
1.When advising the L/C, we shall add confirmation upon request of the issuing bank or exporter (beneficiary).
2.The exporter submits the export documents to our bank, and we make payment without recourse or irrevocable payment promise to the exporter after verification.
3.We will send the documents to the issuing bank abroad for remittance claim. After receiving the foreign payment, we will return the payment to our bank。