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International Trade Purchase Order Financing

Overview

The International Trade Purchase Order Financing (hereinafter "PO Financing") is a short-term financing by which the exporter applies with ABC in order to prepare, produce, and ship the goods for export under the export contract/purchase order (PO) provided that the payment is to be made by remittance or documentary collection. It can also be called Package Loan under remittance or documentary collection.

Features

1. It enables customers in short of funds to take the opportunity of trade while the advance payment is not available.

2. Proprietary funds of customers are not required during the production and procurement, which mitigates the pressure on working capital.

Procedures

1. The customer completes and submits the Application for PO Financing, the export contract, export permit or license, and other documents required by ABC.

2. ABC reviews the application and signs the Contract for PO Financing with the customer.

3. ABC is entitled to oversee the proceeds use to ensure that the proceeds are used for predetermined purpose only, i.e. for preparation of the goods for export under the export contract.

4. The customer repays the principal and interest after receiving the payment from the importer.

Note: Please contact your local branch for detailed information about the service.

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