I. Description
The Bank, at request of the L/C applicant, reaches an agreement with the latter on transferring ownership right of the documents and goods under L/C to the Bank, and releases documents and make payment on behalf of the L/C applicant in the form of trust receipts. The L/C applicant, in return, uses funds collected from sales of relevant goods to repay the Bank's loans.

II. Product Functions
Help domestic buyers in commodity transactions that are temporarily unable to pay after receiving documents under L/C to resolve temporary financing fund shortage.

III. Target Customers
i. The buyer who meets difficulties in fund turnover and can't timely pay the documents;
ii. The buyer who obtains a new investment opportunity before the payment, which expects higher rate of return than the interest rate of the financing;
iii. Improve the bargaining power. By changing the payment period from deferred payment to spot payment, the period of payment will be consequently shortened, which helps improve the buyer's bargaining power. 

IV. Qualifications
i. Approved/registered in accordance with the law, having obtained corporate business license or other valid documents that certify the company’s business legality and business scope;
ii. Having opened a basic deposit account or a general deposit account with the Bank;
iii. Legal, compliant and normal operation; outstanding financing from banks are free from overdue payment, debit interest or advances;
iv. Good product quality and service, proven track record about contract performance;
v. Goods under the L/C is core merchandise or major raw material of the buyer;
vi. Legitimate purchase/sales contract, which specifies that the transaction will be settled through L/C; the L/C issued meets the Bank's rules and regulations; and the borrower is able to provide business materials required by the Bank; and
vii. Meeting other requirements of the Bank.

V. Handling Procedures
i. The applicant submits financing application as well as relevant business materials to the Bank;
ii. The Bank signs contract and trust receipt with the customer after investigation and examination;
iii. The Bank makes payment on behalf of the applicant, and delivers documents under the L/C;
iv. The buyer pays the Bank at maturity who, in return, uses the payment to repay the documentary credit.

Note: Information on the page is for reference only. Please refer to announcements and regulations of local outlets for specific business.