I. Description
Discounting of electronic commercial draft by Interest Agreed is the business that the corporate bearer, before maturity of its legally held electronic commercial drafts, applies via the online banking for discount service to ICBC discounting acceptance institutions in the form of endorsed transfer, and ICBC discounting acceptance institutions pay the bills in advance to the bearer as per the par value or the related amount under agreed conditions, with the discount interest to be borne by the interest paying party as agreed in the agreement.

II. Target Customers
Business entities with short-term financing needs and a prominent seller’s market.

III. Features and Advantages
i. In this business type, the seller is only required to handle a few discount procedures, and does not have to bear the discount interest, which is equivalent to collecting payment for goods in cash;
ii. The buyer can procure spot goods with deferred payment, and may also enjoy a favorable business discount;
iii. Official vouchers for interest payment will be issued to the interest paying party and can be accounted for in the cost as financial expenses, so the fund cost consists of the discount interest only, which is greatly lower than loan interest, thus helping reduce the buyer’s financial expenses and financing cost;
iv. The discount interest can be paid flexibly: by the buyer, the seller, or a third party as freely agreed.
v. It can shorten the transit time of commercial drafts and funds, reduce transaction costs, and enhance payment efficiency.

IV. Conditions
A tripartite agreement.
Refer to the Electronic Commercial Draft Discounting for further details.

Note: The information on the page is for reference only. Specific businesses are subject to announcements and regulations of local outlets.