L/C Issuance

Which is the best payment method to protect the interests of a buyer?
A Letter of Credit (L/C) is the best payment instrument to protect the interests of both the buyer and the supplier in trade transactions. Based on your instructions, we are pleased to issue L/Cs on your behalf to your beneficiary (i.e. your supplier / seller / exporter). In addition, our dedicated trade services staff will carefully check the relevant documents for you. Payment or acceptance is subject to the compliance of terms and conditions stipulated in the L/C and acceptance of any discrepancies.

Back to Back L/C

As a middleman, how can you profit from trade without disclosing the identity or details of your ultimate buyer and supplier?
A Back-to-back L/C safeguards your interests as a middleman by refraining from the disclosure of the identity/details of your supplier to your customers and vice versa. You simply provide us with the original L/C (called "master L/C") and we will issue another L/C involving the same lot of goods (called "baby L/C") to the supplier. Our trade services professionals will then coordinate the handling of import and export documents so you can focus on your business.

Do you and your suppliers consider L/C issuance to be bothersome?
Import collection is a simpler alternative to L/Cs. When your suppliers send the documents to us through their bankers, we will inform you immediately. Documents are released to you when your supplier's payment terms are fulfilled.
There are two types of import collection, namely:
Documents against payment (D/P), where we will release the documents to you against full payment;
Documents against acceptance (D/A), where we will release the documents to you against acceptance of the bill of exchange (draft) guaranteeing payment at a later date. Also, D/A allows you to examine the goods before effecting payment.

What do you expect from an L/C advising service?
Speed and reliability are what makes our L/C advising stand out, supported by our links with the Bank of China in the mainland and our worldwide correspondent banking coverage. Simply ask your buyer to choose Bank of China (Hong Kong) as the L/C advising bank to benefit from our quality and professional service.
What can you do if you are worried about the financial standing or the country/region risk of the L/C issuing bank?
If you are doubtful about the financial standing or the country risk of the L/C issuing bank, you may request your buyers to insert the term "Add Confirmation" in the L/Cs advised by us. In so doing, we may add our confirmation on it and share the same responsibilities and obligations as the L/C issuing bank.

As a middleman, how can you settle an L/C without credit facilities?
A Transfer L/C is an ideal solution. You can wholly or partially transfer the L/C to your suppliers at your request, provided the L/C is "transferable". Under such circumstances, the name of the buyer and that of the supplier must be disclosed.
There are two types of transfer L/Cs:
Fully Transferable
The L/C is fully transferred to the second beneficiary (supplier) from the first beneficiary (middleman) without any alteration of terms.
Partially Transferable
This L/C enables the first beneficiary (middleman) to substitute the draft and invoice submitted by the secondary beneficiary (supplier) and gain from a spread in the value exchanged. The transfer must be made under the same terms and conditions stated in the original L/C with exclusion of the following: amount, unit price, expiry date, presentation period and shipment date.

What payment method is simpler than an open account or a L/C?
With our "Export Bills for Collection" service, you simply present your documents to us and we will send them to your buyer's banker in a timely manner. Documents will be released to your buyer upon payment or against acceptance.
There are two types of export bills for collection:
Documents against payment (D/P), where the presenting bank releases the documents to the buyer only against a cash payment in a prescribed currency; and
Documents against acceptance (D/A), where the presenting bank releases the documents to the buyer against acceptance of a bill of exchange (draft) guaranteeing payment at a later date.