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Bill Rediscount
 
Product Overview
Divided buy-out and repurchase, the buy-out bill rediscount business occurs when a financial institution transfers discounted commercial bills that are not due to CMB.
Repurchase bill rediscount is a financing method in which a financial institution transfers discounted commercial bills to CMB for further discount, and agrees to redeem them after a given period. The repurchase date is on or before the due date indicated on the commercial bill that is first due, and all the bills are bought back simultaneously. The amount payable by CMB is paid immediately after deducting the interest to be accumulated in the repurchase period from the par value of the bills. The financial institution redeems the bills by par value at maturity. 

Advantages
1. Easy operation
2. Reasonable price  

Service Procedure
Buy-out rediscount
1. The two parties agree on an intent of transaction concerning the type, amount and price of the bills to be transferred.
2. CMB examines the credit risks of the bill acceptor.
3. CMB identifies the authenticity of the bills and reviews the documents along with the bills.
4. The two parties conclude the rediscount agreement and CMB makes payment. 

Repurchase rediscount
1. The two parties agree on an intent of transaction concerning the type, amount and price of the bills to be transferred.
2. CMB carries out necessary due diligence and grants the financial institution a proper credit line.
3. CMB identifies the authenticity of the bills and reviews the documents along with the bills.
4. The two parties conclude the rediscount agreement and CMB makes the payment.
5. The two parties both sign and seal the bills. CMB retains the bills and pays the financial institution after deducting the rediscount interest. The fund is immediately transfered.
6. On the maturity date, the financial institution pays back the principal of the bills to CMB, and recovers the sealed bills.
Note:
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.