Issuance of L/C with credit extension
Issuance of L/C with credit limits refers to the activity that the Bank, in accordance with the debt paying ability and performance records of the customer or mortgage/guarantee provided by the customer, issue the import L/C to the customer who is exempt from all or part of deposit by means of credit line or approval for every transaction.
- The Bank provides credit and guarantee and the issuing bank bears the first-payment liability;
- With the credit and guarantee of the issuing bank, the applicant can get favorable terms of quotation in the trade negotiations and effectively promote the exporters to fulfill contract through the terms of the letter of credit to ensure the safety of transactions;
- The importer can reduce funds tied up and speed up capital turnover so as to enhance capital utilization efficiency.
- Customers who have the right to engage in import and export and have a real import and export trade background;
- Customers who have good credit, no bad record, no involvement in "money laundering" or other illegal activities;
- Customers who have little knowledge of the credit state of the exporter, or involve in transaction with great amount;
- Customers who meet other requirements of the Bank.