Authentication loans refer to circulating fund loans that the China Merchants Bank, based on the sales contract between two enterprises, the authentication promise made by the account-hosting bank of the buyer, as well a other valid promises on payment, releases to a seller requiring no other guaranty.

Authentication promise is a promise to pay that the China Merchants Bank, based on its authentication of a sales contract between two enterprises, makes to the account-hosting bank of the seller. In case the buyer, due to any reason, fails to settle in full amount the payment for goods defined is the sales contract, which in turn, renders the seller’s account-hosting bank incapable of timely recouping in full amount its authentication loans released to the seller, the China Merchants Bank promises to unconditionally pay, at sight of a written notice from the seller’s account-hosting bank, the loan and due interest that the seller’s account-hosting bank is unable to recover, and the total amount should not exceed the portion of payment for goods defaulted by the buyer.

Conditions for Service Application

·	Authentication loans and authentication promise should be based on a sales contract signed between two enterprises;
·	Authentication loans are mainly applicable to production-and-sales enterprises that run on insufficient circulating fund but are not able to seek guaranty for bank financing;
·	An application for authentication loans must be backed up by an authentication promise made by the buyer’s account-hosting bank;
·	Authentication loans are lodged on special account for specified purpose with closed operation;

Service Features
· Providing convenience of financing to promote sales;
· Payment promise founded on bank credit to facilitate domestic trade;
· Helping enterprises to develop close partnership among them, to promote mutual
     development.