China is becoming increasingly important in the global trade economy. Backed by the strong credit rating of Industrial and Commercial Bank of China Ltd, its largest branch network and its outstanding ability to manage risk in China, ICBC (London) plc is very active in providing trade finance facilities, in particular in respect of China related trades. This robust position allows our Trade Finance team to offer a broad suite of products for example, letters of credit, documentary collections, bank guarantees, standby letters of credit, L/C confirmations, forfaiting, and discounting of bills of exchange, to support your trade transactions.
A documentary credit is a conditional guarantee of payment, in which we take responsibility for payment against a shipment of goods, provided that all the stipulated documents (such as documents of title, invoices, insurance policies and other regulatory documents) are presented.
Payment by documentary credit enables you to extend the credit period that a supplier is willing to provide to you.
Standby Letters of Credit and Bank Guarantees
A standby letter of credit is an instrument typically used by a bank to undertake to pay one party to a contract (known as the beneficiary) when the other party has, or is alleged to have, failed to perform the contract. It is usually payable simply on presentation of a written demand by the beneficiary. It is often used to guarantee performance or to strengthen the credit worthiness of the customer.
A bank guarantee is an undertaking by a bank to cover a debt or risk on a transaction. It may be used as an alternative to a company offering security for a debt itself. The company would typically be required to provide some form of security such as, cash collateral, counter-indemnity or security over its assets.
These instruments allow you to provide assurance to your counterparties to support your existing business or secure new deals.
Export Bills for Collection
Collection is typically used in international trade whereby the bank controls the release your financial or commercial documents or both to your buyer upon cash payment or against acceptance of a bill of exchange guaranteeing payment at a later date.
Our documents against acceptance, documents against payment or clean collections will simplify your tracking and reconciliation of export collections.
Export Letter of Credit Checking and Negotiation
Our 24 hour document handling centre in China, together with strict and efficient checking standards, ensure that your documents will be negotiated and dispatched quickly.
Export Letter of Credit Confirmation
Export Letter of Credit issued by less reputed banks or institutions may not provide sufficient comfort to exporters. By requesting our confirmation of your export letters of credit, you may obtain our guarantee of payment to the exporter provided that documents that comply with the credit are presented to us.
Bills of Exchange Discounting /Invoice Discounting/Forfaiting
You may obtain immediate cash funding by requesting us to discount or purchase your bills, invoices or receivables. This can be done either with or without recourse to the exporter, and is often used to enhance your cash flow and working capital position.
RMB Trade related products and services
Manage your cross border trade related risks with China with our customised CNH (Offshore RMB) and RMB products and services.
Our products and solutions are subject to separate terms and conditions.
For more information on our products and services, please contact our Trade Finance team.
ICBC (London) plc
81 King William Street
London EC4N 7BG
Phone: +44 20 7397 8888