WIN IN FOREIGN EXCHANGE

Service Profile

Forfaiting, also known as buyout, is a non-recourse discounting of bills of exchange under forward letters of credit by our bank at the request of our clients (beneficiaries of letters of credit) or other financial institutions after the bills of exchange have been accepted by the issuing bank or confirming bank or other designated banks.

Service Advantages

Capability enhanced: Bank of Jining’s without-recourse purchaseof A/R is a significant help for you to negotiate with importer/buyer better contract conditions by accepting longer payment term. Financial efficiency increased: Bank of Jining’s without-recourse purchase of A/R is a significant financial support for you to cash A/R and improve your financial health.

Financial and political risks mitigated: Bank of Jining’s without-recourse purchaseof A/R is a significant tool for you to manage the fluctuation of exchange rates and political uncertainty over the payment term.

Service Function

Accelerate capital turnover - Customers can collect payment before making payments in foreign banks, which can accelerate capital turnover and alleviate the pressure of capital shortage;

Risk aversion - customers enjoy fixed interest rate and non Legal recourse discount, lock the financial cost of customers, and transfer all credit risk, Foreign exchange risk and country risk to our bank;

Increase trade opportunities - customers can offer importers more attractive forward payment terms, or consider trading areas that were previously considered high-risk, thereby increasing trade opportunities and enhancing competitiveness;

Improve the financial statements - because Forfaiting business is a discount without Legal recourse, customers can be regarded as having actually collected foreign exchange, increasing the current cash flow, and reducing the accounts receivable, thus making customers' financial situation better.