I. Introduction
After your company submits all the documents against the Usance L/C and a commitment of payment has been received from the L/C issuing bank, ICBC grants your company a facility without recourse before the receipt of goods payment from the L/C issuing Bank.

II. Features and Advantages
Forfaiting has the following benefits:
1. Rule out all the risks (political, commercial, interest rate, exchange rate) to receive forward F/X;
2. Improve cash flow, settle FX and tax rebate in advance;
3. Expand the trade with countries which are considered to be risky in the past;
4. Credit facility without recourse makes your company's balance sheet looks better, because account receivable is replaced by cash income.

III. Target Clients
Apply once your company receives the message from the L/C issuing bank on the confirmation of payment under the usance L/Con due date.

IV. Operation Guide
1. First time: sign Forfaiting Service Agreement one time with ICBC.
2. Submit the following for each application:
(1) Forfaiting Service Application Form;
(2) Full set of documents: L/C and amendment (if any) and commercial invoice, bill of lading and draft;
(3) Assignment Letter on L/C amount;
(4) Other documentations required by ICBC.
3. ICBC gives the quote after checking the above documents. Once your company agrees, ICBC proceeds the loan.

V. Application Conditions
1. Forfating facility does not require your company to be rated or given a credit line by ICBC.

VI. FAQ
1. Discount rate depends on the credibility of L/C issuing bank or confirming bank.
2. You can get the quote from ICBC before you submit the documents. For the quotation, you are required to report the full name of L/C opening bank in English, financing term, bill currency, type of L/C, country of the L/C issuing Bank and shipment date.

VII. Statement
Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final rights of interpretation. Refer to the announcements and regulations of local branches for further details.