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Invoice Financing

I. Introduction
A short-term loan from ICBC to domestic small enterprises who use the invoices generated from sales of merchandize in China as vouchers without transferring the creditor right of receivables to ICBC. The receivables matched under the invoices are used as the first source for loan repayment.

II. Target Clients
Enterprises running normal business, good management on account receivables, stable business with the downstream purchasers.

III. Features and Advantages
1. Very simple procedures, loans are available if contracts, invoices or other documents can be given;
2. Free up capital that is stuck in account receivables, collect receivables in advance, improve cash flow;
3. High loan amount, up to equal amount of account receivables if the business relationship is stable, both the purchaser and supplier have good credit;
4. Loans to some borrowers without the need to transfer the creditor right of account receivables to ICBC.

IV. Application Conditions
1. Loan card issued by the People's Bank of China and registered under administrative department of industrial and commerce (except where not required by People's Bank of China). Annual inspection has been completed;
2. Borrower and purchaser open primary settlement account or general settlement account in ICBC, good credit;
3. Borrower has normal production, good product quality, good services, at least 6 months of stable business relationship with the purchaser, good record of fulfilling contract requirements;
4. Borrower has good management on account receivables, good portfolio, minimal bad debt, able to buy back account receivables if necessary;
5. Purchaser has sound business, sufficient cash flow, able to repay debt, no intention to delay payment, no other bad credit history;
6. Account receivables generated from selling goods or providing services to corporate companies, public corporate entities, government or army;
7. Clear ownership of account receivables, not transferred or pledged, both supplier and buyer not yet agree on the transfer.

Note: Information herein is for reference only. Refer to the announcements and regulations of local branches for further details. ICBC reserves the final right of interpretation.

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