Buyer Bill Advance

Buyer Bill Advance is a short-term finance service that CEXIM makes advance payment on behalf of the buyer (our customer) with valid certifications and commercial documents under import/domestic documentary credit or import documentary collection. 

Our Service:Buyer bill advance under import documentary credit, domestic documentary credit and import documentary collection. 

Benefits for Buyers 

Reducing the Funds Tied Up: It enables the buyer to purchasing merchandise with bank funds and earn profits without occupying the working capital; 

Simple Steps: Compared with loans, buyer bill advance requires fewer procedures; 

Improving the Bargaining Power:  It helps the buyer enhancing its bargaining power when negotiating with the exporters by converting the payment at usance into payment at sight, or shortening the payment period;  

Optimizing Capital Management:  If the buyer encounters a new investment opportunity which has a higher expected return rate than the interest rate of bill advance, buyer bill advance can ensure the buyer’s regular purchasing and sales as well as gains on investment, thereby achieving the highest efficiency of the funds; 

Seizing Market Opportunities, Reducing Price Risks: Although lacking working capital for release of goods, the buyer can still make payment under bill advance and take over the goods for resale, thus seizing the opportunities in the market and avoiding price fluctuations. 

When Do You Choose Buyer Bill Advance? 

The buyer faces a temporal shortage of funds and is unable to effect payment on time; 

The buyer encounters a new investment opportunity before payment and the expected return rate is higher than the interest rate of bill advance. 

Tips 

Before applying for buyer bill advance in our bank, kindly note that an approved credit line is required; 

Buyer bill advance is a finance service specifically used to fulfill the buyer’s payment obligation in the trade which truly exists; 

The buyer (our customers) should sign a formal agreement with the bank on buyer bill advance so as to specify the amount, term, interest rate, date of repayment and etc, and should pay attention to the trend of market interest rate and exchange rate of RMB and payment currency so as to select a currency for bill advance at the lowest cost; 

Length of buyer bill advance arrangement, normally not more than 90 days, should match with the reselling period of the imported goods, along with the sales revenues as funds for repayment.