This refers to the short term working capital loan granted by SRCB to exporters who are insured by China Export & Credit Insurance Corporation (shorted as China Credit Insurance). Under this arrangement, exporter must meet several requirements before obtaining the credit.
1. Exporter must purchase short-term Export & Credit Insurance coverage from China Credit Insurance;
2. Exporter can only apply for the amount of credit facility as approved by China Credit Insurance from SRCB;
3. The loan can only be used for export business with specific importer as approved by China Credit Insurance;
4. Proceeds of the export must serve as the source of repayment;
5. Terms and conditions for transfer of claim and transfer of recourse must be negotiated among SRCB, China Credit Insurance and the exporter.
6. The exporter must perform the obligations under the insurance policy.
Features
Exporter gets paid prior to importer’s actual payment, which accelerates the capital turnaround and improves financial situation.
Once the exporter has purchased the insurance coverage, it can apply for facility with SRCB. No additional collateral is required.
Help to mitigate foreign exchange risk and secure profit.
Trade finance specific limit can not exceed 80% of the claim value as specified on the insurance policy.
Target customers
For companies who have financing needs but can not provide with valid collaterals.
Application process
1. Customer to purchase short-term Export & Credit Insurance coverage from China Credit Insurance, obtain the insurance policy sheet and credit approval for specific importer.
2. Customer to apply for specific credit line from SRCB. Once approved, customer to sign contract to transfer the claim rights and recourse under the insurance to SRCB.
3. Customer to fulfill the due obligations under the insurance, and have China Credit Insurance to issue “Short-term Export & Credit Insurance Undertaking Notice”.
4. Customer to make written financing application to SRCB. SRCB will review and grant the loan.
