 |
|
Intermediate |
|
|
|
|
|
|
|
|
Commercial draft discount
 | Description: |
| | Commercial draft discount is one of the most direct ways in operation among the draft discount business, in which the seller shall act as the acceptor to issue a draft to the buyer, who will be an applicant for discount and shall go to CMBC for discount. After CMBC has discounted the commercial draft it may collect from the acceptor at due time. It will be processed in the same way as the bank acceptance discount only CMBC will collect from the acceptor directly but not the bank. |
| | Features: |
| | The acceptor must have been granted credit from the bank, and for this he must provide:
1) Discount application;2) Business license of the applicant and guarantor, loan certificate (card), legal representative code and ID card;3) The approved annual report, the latest financial statements and credit of the applicant and the guarantor;4) if it is a company of limited liability or incorporated company the company’s articles of association and the resolution of board of directors shall also be provided;5) the Letter of commitment for agreeing to guarantee provided by guarantor;6) when processing the single negotiation the genuine commodity sales contract, trading or labor contract shall be provided; 7) Other relevant material shall be provided.
The acceptor may issue the draft according to its business needs; and the discount may processed by Minsheng bank within the credit limit.
|
| | Application of procedure: |
| | TO apply for discount the enterprises shall provide the following documents:
1) Enterprise draft of acceptance and its photocopies;
2) Commodity sales contract and documents related to debts;
3) VAT invoice with its immediately previous handler or the certificate if it is non VAT organization;
4) Discount application and discount agreement;
5) the discount voucher with the applicant's stamp;
6) Other relevant materials;
7) Other materials required by CMBC. CMBC shall check the materials; the acceptor and the applicant shall both have opened an account with CMBC; CMBC will process discount for the applying enterprises.
|
| | Condition for application : |
| |
1. Acceptor and applicant shall both have opened accounts with CMBC;
2. The legal and physical commodity transactions are happening between the two parties;
3. The acceptor shall be the CMBC client who has bee granted a credit limit;
4. Other conditions required by the bank. |
|
