About the product
Export overseas payment business refers to the short-term fund financing business in which the exporter submits a financing application to the Bank after the goods have been exported, and after the conditions required by the Bank are met, the Bank instructs an overseas correspondent bank to provide the funds needed for financing, and the exporter repays the above funds to the Bank on the agreed financing maturity date.
Product features
1. Relieve the financial pressure. Receive the funds in advance under export through bank financing to put the funds in the follow-up production and operation.
2. Reduce the financing cost of the exporter when the overseas payment price is lower than the domestic financing price.
3. Settle foreign exchange in advance to earn the exchange rate difference in the context of RMB appreciation.
Application
1. Customers hope to receive money at sight, while counterparties prefer future payment.
2. Customers who have a demand for overseas low-cost capital as the domestic capital cost is higher than the overseas capital cost.
Rate
No handling fee is charged. The financing interest rate is subject to the domestic and foreign currency trade financing interest rate of the Bank, and the pricing is based on the price of the paying bank.
Handling process
1. The exporter, i.e., the financing applicant, applies to the Bank for export overseas payment business.
2. The Banks makes an inquiry to the overseas correspondent bank, i.e., the paying bank, and offer it to the financing applicant. The financing applicant accepts the offer of the Bank.
3. After check and verification, the Bank authorizes the paying bank to pay the financing funds under export to the customer.
4. After the payment is made, the paying bank notifies the Bank of the information such as the interest rate and maturity date.
5. The Bank receives the funds from the paying bank, pays the financing applicant and notifies them of the information such as the paying interest rate, principal and interest and maturity date.
6. On the maturity date, the financing applicant receives the payment from the overseas importer and returns the principal and interest to the Bank.
7. The Bank returns the principal and interest to the paying bank.
Case
Export enterprise A exports a batch of goods to South America, and will recover the payment of USD 4 million after 180 days. Enterprise A asks the Bank for a better plan to optimize the finance. Considering that RMB is in the channel of appreciation, and the price of overseas US dollar funds is lower than that of domestic funds, the Bank handles the six-month export overseas payment business, and enterprise A deposits it in the form of security deposit after receiving the payment and settlement of foreign exchange. Through this business, Enterprise A gained 2.665% of the six-month fixed deposit income, and 1.5% of the RMB exchange rate appreciation income. After the deduction of 3.5% of the overseas payment cost, enterprise A gained a net income of more than RMB 80,000.
