Discounting of Bank Acceptance Bill (Partial Recourse)
I. Description Discounting of bank acceptance bill (partial recourse) refers to the business that ICBC discounting acceptance institutions, on the basis of controllable risk, buy out undue bank acceptance bills from the bearer, and undertake to waive the right of recourse to the bearer and its designated prior bearers.
II. Target Customers Some listed companies or the institutions of foreign enterprises in China.
III. Features and Advantages i. This business type can realize clean transfer of corporate bills without indication in the contingent liability account, so it is equivalent to recovering accounts receivable, which optimizes the financial statements; ii. It may vitalize the existing assets of the enterprise, reduce related financial expenses such as interest expense, enhance the assets utilization ratio, and reduce the financing costs; iii. This business type exempts the enterprise from possible right of recourse caused by discounted bills and thus reduces its business risks; iv. Easy procedures, and practical and efficient financing meet the enterprises’ demands for quick availability of funds.
IV. Conditions An agreement on Discounting of Bank Acceptance Bill (Partial Recourse) Refer to the Commercial Draft Discounting for further details.
Note: The information on the page is for reference only. Specific businesses are subject to announcements and regulations of local outlets.