The Export Bill Discount is a kind of financing where customers sell the drafts under a usance L/C accepted by the issuing bank or documentary collection drafts with "Per aval" by a bank to BANK OF KUNLUN prior to the maturity of such drafts while BANK OF KUNLUN pays customers the amount of the face value of the bills minus the discount charges and related fees. Export Bill Discount is different from forfeiting that the discount bank reserves the right of recourse.
Customers are able to immediately receive payments, speed up the funds turnover and be relieved from shortage of funds.
1) The customer signs an Export Bill Discount Contract with BANK OF KUNLUN to specify the rights and obligations of the parties at the time of application. On a case-specific manner, the customer submits the Application for Export Bill Discount to BANK OF KUNLUN together with the time drafts with bank acceptance or "Per Aval" as well as other documents required by BANK OF KUNLUN.
2) International Business Department reviews the authenticity of the acceptance bills / bills with signature, and checks whether the form is in compliance and whether the accepting bank has enough credit line. The Department will issue an opinion for further approval.
3) After the approval is made, the discounting amount will be remitted to BANK OF KUNLUN’s account.
4) After maturity, the Department is responsible to collect payment. If collection fails because the accepting bank or the del credere bank goes bankrupt, the Customer Department is responsible to collect repayment.