Product Definition

　　Domestic Forfaiting under LC refers to a process where Harbin Bank buys or sells receivables under a domestic letter of credit, arising from genuine trade transactions, on a non-recourse basis.

　　Product Features

　　1. Harbin Bank can offer non-recourse financing once the issuing bank, confirming bank, or any other designated bank has committed to making payment at the letter of credit's maturity; 

　　2. The currency used for discounting must be the same as that specified in the letter of credit. The interest rate is determined by the risk level of the paying bank and its location, with lower risk associated with a lower interest rate.  

　　3. Harbin Bank can offer financing terms ranging from several days to one year depending on actual circumstances.

　　4. Upon completion of the forfaiting transaction, the entire process can be finalized through the advance processing of the foreign exchange settlement.

　　Application Conditions

　　1. The applicant must meet the basic conditions for domestic corporate clients specified by the bank.

　　2. The applicant must be the beneficiary under the domestic letter of credit.

　　3. The applicant must have a basic deposit account or general deposit account in RMB at Harbin Bank.

　　4. Other conditions deemed necessary by Harbin Bank or the forfaiting service.

　　Processing Procedure

　　1. You are required to enter into a Domestic Forfaiting under Letter of Credit (LC) Service Contract with Harbin Bank.

　　2. You are required to provide a Domestic Forfaiting under LC Service Application, a copy of the complete set of documents submitted to Harbin Bank by the applicant, a maturity payment confirmation from the issuing bank or confirming bank, and any other materials required by Harbin Bank.