The export bill purchased refers to the financing of the Bank to the export bills (including demand bills, forward non-accepted bills or promised payment bills) under the letter of credit with the right of recourse.
The export discount refers to financing of the Bank to the forward bills accepted or promised by the issuing bank (confirming bank) or accepting bank under the export letter of credit (exclude the standby letters of credit) with the right of recourse.
1. The export bill purchased/discount is the short-term advance. The period of export bill purchased is generally not more than 180 days and the period of export discount is not more than 360 days.
2. The export bill purchased/discount refers to paying the client the remainder after deduction of interests. The interest is calculated by the following formula: financing amount× annual interest rate of financing× number of bill purchasing days/360.
3. The export bill purchased/discount is the advance of the Bank with the right of recourse. Regardless of the cause, if the client cannot collect the money from foreign countries, the client shall still pay the advance through raising money from other sources.