I. Description
Trade financing is related to the trade in goods or services. It is a credit facility using short-term structured financing tool against assets such as inventory, prepayment or accounts receivable in trade. The Bank's trade financing products are grouped into two categories - international trade financing products or domestic trade financing products, depending on where the trade is conducted. Domestic trade financing products are for customers (borrower, same below) and their counterparties that are both in China, while international trade financing products are for the customers whose counterparties are outside China. 

II. Target Customers
Trade financing is applicable for customers whose debt can be pledged or transferred in trade. Compared with other financing solutions, trade financing can better meet the customers' financing needs, especially SME customers with low creditability, lack of real estate property and machinery equipment to secure loans, but holding quality debts with large core companies in their supply chain.

III. Features and Advantages
Distinctive features of trade financing:
i. Rich solutions: An array of trade financing products is available for companies to settle trades (domestic and international) in different stages of production or sales;
ii. Wide coverage: Compared with working capital loans, all companies, whether large or small, are welcomed to apply;
iii. Diversified service channels: The Bank's different service channels and extensive network of outlets offer customers many choices to apply, either in person at outlets or Internet banking.

IV. Qualifications
Applicants are required to provide business license and other documents to the Bank that can prove the company's status of production and operation, and trade contract, invoices, delivery order, goods acceptance receipt to prove the validity and ownership of their debts.

V. Service Channels and Business Hours
The service is available during working days at the ICBC sub-branches that offer corporate banking services. The ICBC customer managers will assist customers in going through the procedures. Domestic factoring and domestic trade financing solutions based on the transactions of specific core companies in supply chain can be applied for online "at home or office", "24 hours a day, 7 days a week" via Internet banking or Bank-Enterprise Interlink, etc.

VI. Handling Procedures
At bank counter:
i. Arrange an appointment with an ICBC customer manager to discuss the details and provide necessary documents; ii. The ICBC customer manager performs due diligence and submits applications to the branch at higher level;
iii. Customer opens accounts as instructed by the ICBC customer manager, and transfers and pledges the debts or goods to the ICBC; 
iv. Customer applies for the funds needed and ICBC will grant the loan according to regulatory requirements.
Via e-channels:
i. Arrange an appointment with an ICBC customer manager to discuss the details and provide necessary documents, sign up corporate Internet banking and open up account at the ICBC. This procedure shall be performed only once;
ii. Apply via the corporate Internet banking and upload the documents required;
iii. The ICBC will accept the application and handle the transfer and pledge of the debts or goods;
iv. Customer applies for the funds needed, and the ICBC will grant the loan according to regulatory requirement.

VII. Operational Guide
The whole process is dominated by ICBC customer managers in accordance with internal operational procedures. You just need to provide the documents required and sign up necessary services. 

VIII. Tips
You can use trade financing to expand your production and sales with your normal operations remaining unaffected.
For example, you can use revolving domestic factoring to collect accounts receivable in advance and secure low-cost funding to expand production; and you can use domestic L/C to reach new customers backed by the Bank's reputation, and apply for financing under L/C fast and easily whenever necessary.

IX. Interest Rate
The interest rates of domestic and international trade financing shall be determined by and properly floated up on the basis of the PBOC's benchmark rate and LIBOR respectively..

X. FAQs
After applying, you need to provide assistance to the ICBC in the management of the pledge or transfer of the debts.

XI. Definitions
Debts refer to the immovable assets, such a prepayment, inventories and accounts receivable, generated from daily production and operations. LIBOR (London Interbank Offered Rate) is the interest rate at which commercial banks can borrow USD funds in the London interbank market from banks other than US banks.

Note: Information herein is for reference only. Refer to the announcements and regulations of local branches for further details.