About the product
Freight Finance Service refers to the loan business that the Bank provides to qualified freight forwarders, foreign trade enterprises and other market entities to pay freight under international logistics.
Product features
1. The repayment method is to repay the principal at the customer’s own will, and the interest will be paid off with the principal.
2. Simple provision of business information.
3. The operation is highly convenient.
4. Refer to the credit policy of the Bank for the guarantee method.
Application
Market entities engaged in the international logistics industry such as freight forwarders and foreign trade enterprises.
Rate
The handling fee is calculated according to the loan amount and loan term, with a minimum of 0.1% and a maximum of 1.5%. The handling rate and other financing rates are comprehensively considered according to the domestic and foreign currency trade financing rates of the Bank.
Handling process
1. Customers provide information related to international transportation to the Bank, including but not limited to contracts signed with shipping companies or freight forwarders at a higher level, details of VAT invoice booking, etc.
2. After conducting data review and due diligence, the customer manager of the Bank contacts the customer for contract signing and account opening.
3. After check and approval, the Bank releases the loan to the customer's account, and pays the loan funds through entrusted payment.
Case
Ningbo-based XX International Logistics Co., Ltd. is an international freight forwarding company which exports its products to the Netherlands and other countries. Due to the impact of the COVID-19 epidemic, the customers of the company all postponed the time of settlement, and the company had a large gap in advance funds, so they applied for the product from the Bank. It took only 12 days from March 2021 when the Bank started to handle the information of the company to complete the credit approval and issuance of the loan, which resolved the urgent need of the company. The final financing amount was USD 500,000, the interest rate was set at 3.70%, and the term was 90 days.
