Solutions for Domestic Business Chain Financing Combinations

Heeding the demands of suppliers, purchasers and dealers in domestic trade for short-term financing, the China Merchants Bank introduced “Solutions for Domestic Business Chain Financing Combinations” that incorporates many unique and customized financing methods for various types of enterprises, in an effort to promote domestic commodity trade and accelerate logistic services in the country.

Warehouse Warrant Collateral Loans
Corporate clients may apply loans from the bank with its own warehouse warrants or warehouse warrants held by a third party as collaterals.

Commodity Drawn Right Financing
With a three-party agreement signed by the supplier, the dealer and the bank, the bank provides loans to the dealer on condition that the bank holds the commodity drawn right.

Warehouse confirming
With the supplier’s promise to redeem, the purchaser applies for a loan quota from the bank with the supplier’s established warehouse warrant from the warehouse designated by the bank as the collateral; the bank provides the loans on condition that it holds the drawn right. Warehouse confirming service realizes the leveraged procurement of the purchaser and batch sales of the supplier.

Movable Estate Collateral Loans
Corporate clients may apply for loans from the bank with their own moveable estates (commodities and raw materials) or moveable estates held by a third party as collaterals.

Automobile Sales Financing
Automobile dealers apply to the bank for loans, acceptance, establishment of a L/C, or comprehensive credit for the purpose of purchasing new products from automobile manufacturers. Such service should use automobile qualification certificates as an auxiliary risk-control method.

Solutions for International Trade Financing

In an effort to meet the need of importers and exporters for international trade financing, the China Merchants Bank has introduced “Solutions for International Trade Financing” that provides a package solution involving establishment of L/C, imports/exports bill of exchange, guaranty for bill of lading, packing loan, T/T financing, letter of guarantee financing, bill buy-up, credit insurance financing, and overseas guaranty. This service helps to reduce corporate clients’ pressure for cash turnover, and promote international commodity trade.

Bill Buy-up (forfeiting)
The bank buys up its corporate client' s immature bills under export terms without the right of recourse. The bills include banker' s acceptance bill under L/C, long-term commercial paper/draft with bank' s written guaranty or certified good payment, etc.

Credit Insurance Financing
Through its cooperation with China Exports Credit Insurance Company, the China Merchants Bank is providing customized exports credit insurance + bank financing service to its corporate clients. It is applicable to export trade through document-against-payment, document against acceptance, L/C and account sales.

Solutions for Commercial Bill Integration

With development and improvement in the commercial credit system, commercial bills emerge as an important means for enterprises to settle their payment or to seek financing. The China Merchants Bank has introduced the "Solutions for Commercial Bill Integration" to provide its corporate clients with a complete set of short-term fund arrangement. This service helps the clients reactivate their current assets, and accelerate cash circulation to achieve a higher financing capacity with less financial cost.

Commercial Bill Discount
After selling its commodities, the supplier applies to the bank for discount with the banker' s acceptance bill or trade acceptance bill issued by the purchaser. Bill discount interest may be shouldered by the purchaser or third-party enterprises.

Commercial Bill Redemption
The corporate client applies to the bank for redemption of the banker' s acceptance bill or trade acceptance bill previously discounted by the bank before the due date.

Trade Acceptance Bill Discount Guaranty
Within the discount guaranty quota set in advance, the bank promises to discount trade acceptance bills for the acceptors or for the bearers of bill.

Trade Acceptance Bill Guaranty
The bank as a guarantor to trade acceptance bills, shoulders joint and several liabilities to the right of legal bearers of trade acceptance bills.

Solutions for Equipment Financing

In an effort to support the trade of large-scale complete sets of equipment, and to satisfy the financing demand of equipment suppliers and purchasers, the China Merchants Bank has developed special services of "Seller' s Credit" and "Buyer' s Credit." They feature flexible ways to pay interest, help lower corporate financial cost, and promote equipment production and sales.

Seller' s Credit
A special loan that the bank offers to eligible equipment suppliers for the purpose of manufacturing quality, advanced and fit-for-sales large-scale equipment. The supplier collects its payment for goods by installment to facilitate its sales.

Buyer' s Credit
A special loan that the bank offers to eligible equipment purchasers for the purpose of buying large-scale complete sets of equipment manufactured by the supplier who signed the buyer’s credit contract with the bank.
Interest pertaining to the loan may be shouldered by the buyer and the seller in any proportion negotiated between the two.

Solutions for Project Financing Arrangement

Riding on the back of its rich experience in project loans and strong capacity in financing structural arrangement, the China Merchants Bank has introduced "Bank Consortium Financing" and "Project Financing" services to support large-scale construction projects in fields of energy, information industry, communications, agriculture and forestry, electro-mechanical equipment, and public utilities. These projects feature huge fund requirements and stable cash flow, and are well positioned in the national or regional economic development plans.

Bank Consortium Loans
Based on their varying demands, the bank helps its clients define their financing structure, and organize a bank consortium to pool the needed funds. During the early stages of a bank consortium loan project, the bank is also able to provide suggestions and consulting services in terms of fund operation, financial structure, and fund raising.

Project Financing
The bank provides services in financing solution assessment and financing arrangement to large-scale construction projects and its major corporate clients. The bank’s project financing can be either with limited right of recourse or without any right of recourse.