Export Invoice Discounting means that after delivery, the exporter (our customer) under documentary collection against acceptance or open account assigns accounts receivable generated under sales contract to CEXIM, who provides short-term finance by discounting accounts receivable under export invoice with recourse.

Export invoice discounting may take either of two forms: confidential or disclosed, depending on whether the arrangement is disclosed to the debtor.

Benefits for Exporters

Simple Formalities: Formalities of export invoice discounting are simpler and easier than that of other short-term finance services; 

Accelerating Cash Flow: The exporter is able to collect accounts receivable at sight, thereby accelerating cash flow and alleviating the strains on working capital;

Increasing Trade Opportunities: The exporter’s trade opportunities are increased as the importer’s payment is deferred;

Avoiding Exchange Exposure: The exporter obtains financing in advance through discounting, thus avoiding adverse currency fluctuations in the forward market. 

When Do You Choose Export Invoice Discounting?

The exporter who chooses to collect proceeds at future faces high foreign exchange risks along with the appreciation of Renminbi;

The exporter encounters liquidity problem under open account settlement;

The exporter encounters a new investment opportunity after shipment and before collection, and the expected return rate is higher than the discounting rate.

Tips

The exporter should give attention to the importer’s creditworthiness and ability to perform the contract in advance. Once the importer fails to pay, CEXIM will exercise recourse to the exporter；

Our bank does not transact the invoice discounting without trade background or in investment business;

Before applying for export invoice discounting, a credit facility is required; the requirements for customers who have credit insurance will be lower.