Product Definition

　　Domestic negotiation under LC (hereinafter referred to as negotiation) refers to the act where, upon confirmation of payment at maturity by the issuing bank or confirming bank under a negotiable letter of credit, Harbin Bank, as the negotiating bank, purchases the documents under the letter of credit, acquires the rights to claim payment under the letter of credit, and advances or agrees to advance funds to the beneficiary before receiving payment from the issuing or confirming bank, based on the beneficiary's request.

　　Product Features

　　1. Accelerates fund turnover. Recover forward receivables on a spot basis to accelerate cash flow and alleviate financial pressure

　　2. Simplifies financing procedures. Financing procedures are simpler and more straightforward compared to those for working capital loans.

　　Applicable Clients

　　1. Sellers with limited liquidity who rely on fast fund turnover for business operations.

　　2. Sellers who encounter temporary financial difficulties before receiving payment after obtaining payment confirmation from the issuing bank.

　　Application Conditions

　　1. Enterprises that are legally approved and registered with a valid business license, having undergone annual inspections or possessing other valid documentation that verifies their legal operations and defined scope of business activities; having a settlement account opened at Harbin Bank.

　　2. The letter of credit must be a negotiable forward letter of credit without restrictions on the negotiating bank.

　　3. The issuing bank or confirming bank must have confirmed payment at maturity.

　　4. The applicant for negotiation must be the beneficiary under the negotiable letter of credit.

　　5. The issuing bank responsible for confirming payment must be a financial institution that has received credit approval from Harbin Bank and holds a strong credit rating (excluding Harbin Bank's branches).

　　Processing Procedure

　　1. The client submits a business application, and following acceptance and approval by Harbin Bank, a negotiation contract is executed, after which the necessary documents are provided to the bank.

　　2. Harbin Bank reviews the documents and sends them to the issuing bank for collection.

　　3. The issuing bank confirms payment to Harbin Bank upon receipt of the documents.

　　4. Upon receiving payment confirmation from the issuing bank, the customer should submit the Domestic Letter of Credit Application or Domestic Negotiation under LC Contract to Harbin Bank, which will then credit the negotiation amount to the seller's account.

　　5. The issuing bank makes payment to Harbin Bank at maturity, which is used to repay the negotiation amount.