A preliminary study on international trade financing business

In today's society, the competition between Chinese and foreign banks is becoming increasingly fierce. How to occupy a place and make a difference in the competition requires us to adapt to market demand and continuously innovate in trade Financing business. Our Huaxia Bank has embarked on a path of development with the characteristics of a joint-stock bank. road. Continuously deepening structural adjustment and strategically promoting marketing work, in a short period of time, it has gradually built its own unique core advantages, especially the intermediary business represented by international business, which has grown rapidly and has a gratifying development trend, becoming a strategic transformation of Hua Xia Bank a highlight.

International trade financing background

In our country, more than 90% of enterprises are small and medium-sized enterprises. A considerable number of small and medium-sized enterprises have good growth and development prospects. Banks have weak risk control capabilities. Funding support and loan investment are generally tilted towards large enterprises. Small and medium-sized enterprises generally face development difficulties such as difficulty in financing and guaranteeing. Due to constraints in terms of talents and funds, small and medium-sized enterprises hope that banks can provide one-stop professional trade settlement and financing services. Hua Xia Bank has launched such a series of innovative products. For example, the cross-strait remittance through train launched for Taiwan-funded enterprises, the full payment of US dollar remittances, and the export ticket pass launched last year, etc. Among them, Export Bill Pass is guaranteed by the right to collect exports, and provides customers with bank acceptance bills and import certificate issuance services.

It is composed of accounts receivable rights and interests. The business of guaranteeing means and sources of repayment, that is to say, trade financial services based on accounts receivable, is a business innovation based on the Civil Code, and also reflects the self-repaying characteristics of import and export trade. In addition, Huaxia Trade Bao, launched in recent years, is a combination package of four export trade financing products, namely export bill transfer, export discount, forfaiting and credit insurance financing, to solve the problems of financing and guarantee difficulties in the export settlement process of small and medium-sized enterprises. , this is the first phase, and the second phase will also launch a service portfolio for imported products, which is a financial product portfolio for importers during the import process. Importers can choose the services and product portfolios that suit their needs from the product portfolio basket. Pack.

Introduction to international trade financing

Trade financing refers to the bank’s provision of services to importers or exporters. Short-term financing or credit facilities related to import and export trade settlement. Overseas trade financing business (that is, when handling import letter issuance business, using the financing amount and financing conditions provided by foreign correspondent banks to extend the payment period under the letter of credit) is a business managed by the head office.

With the development of my country’s foreign tradeWith the development of the industry, our bank's trade financing methods can be divided into the following types:

1. Credit issuance: refers to the bank reducing or reducing the deposit for customers within the credit limit. Open a letter of credit.

2. Import bill: refers to what the issuing bank provides to the applicant for payment when it receives a complete set of matching documents under the letter of credit. Short-term financing of the letter of credit. Import bill transfer is usually operated in conjunction with a trust receipt (TrustReceipt, T/R). That is to say, the issuing bank releases the documents under the letter of credit to the applicant based on the trust receipt issued by the issuing bank to the bank. The applicant first handles delivery, customs declaration, warehousing, insurance and sales without payment, and The funds returned after the sale of the goods are used to pay the amount of the letter of credit advanced by the bank and related interest. The issuing bank and the applicant for the issuance of the certificate have a trust relationship due to the trust receipt. The bank retains the beneficial rights to the sales revenue of the goods under the document. The applicant for the issuance of the certificate has the legal ownership of the document and can dispose of the goods under the document.