Accounts Payable Financing

Accounts Payable Financing refers to a short-term finance service whereby CEXIM makes payment at the buyer’s request, for the accounts payables generated from the sales contract between the buyer and the seller, on or before the due date. The buyer shall reimburse CEXIM for the payment within the agreed period. 

It can be applied for on accounts payables to foreign or domestic sellers. 

Benefits for Buyers 

Accelerating Cash Flow: Reduce the funds tied up and alleviate the strains on working capital; 

Simple Formalities: Formalities of accounts payable financing are simpler and easier than that of documentary credit and other finance methods; 

Improving the Bargaining Power, Increasing Trade Opportunities: The buyer’s payment is deferred and the seller’s receivables are collected immediately, which enhances the buyer's bargaining power and trade probability. 

When Do You Choose Accounts Payable Financing?  

International or domestic sales of goods or service on payment terms of open account not exceeding 360days;  

Under open account, 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 financing. 

Tips 

The buyer should issue an unconditional and irrevocable undertaking to reimburse CEXIM at the maturity date for payment made by CEXIM; 

The amount of financing is up to 100% of the invoice value and the credit period is up to 180 days;  

CEXIM provides e-banking service for accounts payable financing, which is across time and space, and saves your cost and labor.