Outward Remittance Advance

Outward Remittance Advance refers to the service that CEXIM uses its own funds to pay for the delivered goods at the request of the importer (our customer) and gets repayment from the importer’s resale revenues. 

Our Service: mainly for open account settlement. 

Benefits for Importers 

Solving the Liquidity: It enables the importer to purchase merchandise with bank funds and earn profits without occupying the working capital; 

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

Saving Finance Costs: The importer can choose the finance currency between RMB and the currency of payment according to the interest rate, thus achieving the lowest finance costs; 

Reducing Price Risks: Although lacking working capital for release of goods, the importer can still make payment under outward remittance advance and take over the goods for resale, thus seizing the opportunities in the market and avoiding price fluctuations; 

When Do You Choose Outward Remittance 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 

Outward Remittance Advance is a finance service specifically for open account settlement under import business which truly exists and is subject to the range of bank policy support;  

Please provide the following documents: application for financing, relevant documents, credit agreement and etc; 

Before applying for finance under outward remittance in our bank, kindly note that an approved credit line is required. The customer without approved credit line may apply a special credit facility first; 

The finance currency should be the currency of payment or RMB. If RMB is chosen, foreign exchanges should be purchased as per relevant regulations; 

Length of outward remittance advance arrangement, normally not more than 90 days, should be estimated according to the trade cycle. This service is not for long-term finance and does not permit any extension; 

The amount of financing cannot exceed that of corresponding outward remittance, and the funds can only be used for the corresponding outward remittance.