I. Description
After being designated as the negotiating bank of a domestic L/C, the Bank provides short-term financing to the L/C beneficiary (seller) subject to receivables under the L/C, in case of successful document delivery or effective acceptance from the L/C issuer.

II. Product Functions
i. The seller is able to collect money in advance, accelerate fund turnover, optimize its financial statements, and sharpen its cutting edge;
ii. Not necessary to provide guarantee, simple financing formalities, and high efficiency;
iii. Flexible sharing of the financing cost: the financing cost can be borne by either the seller or the buyer;
iv. Free from any geographic restrictions: the business is available to non-local customers;
v. Help sellers to resolve temporary fund shortage arising from sale-on-credit under the L/C settlement method. 

III. Target Customers
i. The sellers who have limited working capital, and rely on fast fund turnover to carry out business;
ii. The sellers who meet temporary fund turnover difficulty after shipment but before collection of the payment; and
iii. The sellers who have a new investment opportunity after shipment but before collection of the payment, and expect return higher than interest rate of the financing.

IV. Features and Advantages
Not necessary to provide guarantee; simple and convenient handling formalities; timely financing of fund.

V. 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. Normal production operation, good product quality and service, proven track record about contract performance, stable and favorable partnership with the buyer under L/C;
iv. L/C must meet rules and regulations of the Bank; and the customer is able to provide business materials required by the Bank; and
v. Meeting other requirements of the Bank.

VI. Handling Procedures
i. The applicant shall submit negotiation application, as well as materials including business license, financial statements, L/C and documents/transaction contracts under the L/C to the Bank during effective period of the L/C;
ii. The Bank signs financing agreement and grants loans to the applicant through investigation and examination; iii. The Bank mails documents to the L/C issuer to claim for reimbursement;
iv. The L/C issuer prompts L/C applicant after receiving documents; 
v. The L/C issuer pays the Bank at maturity, and the Bank uses the payment to repay the loan.

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