Introduction

The bank guarantees that the policy issued by the exporter shall be paid at tenor by the importer, enabling the importer to procure the goods by a defined maturity.

Benefits to importer

1. Improve negotiating status – By providing the exporter with a bank guaranteed payment document, improves negotiating status of the importer, so may be able to negotiate for a lower purchase price and better terms

2. Extends the payment terms of the importer and helps exporter to cash its receivables by discounting the bank guaranteed document at a reasonable price

3. Especially for importers from China, the aval of Bank of China on the policy related to the import transaction will help the exporter to feel much more confident with the transaction

4. Since the payment will be in RMB, less currency risk involved for the importer and none for the exporter

Application Procedures

1. The importer accepts the policy issued by the exporter, the bank avails the policy upon approval of sufficient line of credit.

2. At maturity, the importer pays the due amount of the policy.

3. In case the importer does not pay Bank of China A.Ş. has to pay.