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Export Bill Under L/C Discounted Without Recourse Basis

Export Bill Under L/C Discounted Without Recourse Basis

 


After product delivery is complete under the Usance L/C, customers have to submit Foreign Bills under L/C to the bank to further collecting a payment from the issuing bank. In this case, we cannot buy such Foreign Bills Without Recourse if the issuing bank have no credit line or customers do not have a credit line for purchasing Foreign Bills under L/C (FPL) or with a credit line but not available. The bank needs to sell such Bills to international bank to get rid of all risks occurring from default of payment by receiving interest margin and profit from exchange rate and fee as a consideration.

Type of Service
  • L/C buying Without Recourse defined as the Usance Export Bill available for customers who wish to sell such bill to the bank at a discount rate under the condition of not claiming anything from customers (Without Recourse)
  • L/C buying Without Recourse could be done under two methods:
    • The bank buys L/C ticket itself
    • The bank sells the L/C ticket to an international bank (Re-negotiation)

Service Objectives
To provide convenient service for customers who are without FPL credit line or with credit line but not in full amount or with credit line but need to sell the export ticket without recourse using as the working capital for business and support the bank’s Trade Finance
 
Applicants’ Qualifications
  • Being international exporter with the Usance Letter of Credit
  • Being the bank’s customers without FPL credit line or with credit line but not available or with credit line but needs to sell the ticket without Recourse
 
Service Terms / Conditions
  • Applying for service, please contact the international trade department and international business center
  • Usance L/C, exporting within a period of time
  • We reserve the right to buy the export ticket without recourse in case of receiving the acceptance from the issuing bank only

Required Documents
  • Request for negotiation/discount of export bills drawn under L/C application form with the company authorized persons’ signatures and seal.
  • Original L/C specifying customer’s name as the beneficiary, but not a restricted L/C
  • Bill of Exchange: B/E
  • Documents as required on the L/C

Benefits
Receiving working capital faster without waiting for the due date on L/C

Download
Export Ticket Without Recourse Buyer Operating Manual

For any inquiries, please contact Call Center Trade Finance Service Tel. 0-2208-3777

For more information, please contact