Trade Finance Services
CMB Wing Lung Bank provides our customers with diversified trade finance products, safe and reliable trade finance settlement services, which are aimed at enhancing traders’ credibility, improving their cash flow, easing market volatility, and grasping market opportunities; transferring or mitigating their risks, such as counter-party risk, solvency risk, country risk, foreign exchange risk and interest risk, arising from the international trade.
(Online application is available.)
Issuing a letter of credit means that the bank will issue a L/C to an external party after implementing a sufficient guarantee or within the credit limit granted by the bank to the customer based on the application of the importer/L/C applicant, and the business of fulfilling payment obligations under the letter of credit after receipt of documents with no discrepancies. Applicants can ensure that suppliers have fulfilled all terms of contract before making payment through L/C, thru protecting the interests of both parties. At the same time, applicants promise to pay the supplier through a letter of credit, which helps to strengthen the importer’s bargaining chip.
Shipping Guarantee is a written guarantee issued by the Bank to the importer/ applicant for picking up the goods with the shipping company/airline when the imported goods arrive at the port earlier than the shipping documents. It is mainly suitable for trade where the shipping voyage is short and the goods arrive earlier than the documents. Customers are allowed to use a copy of the shipping guarantee as a voucher to pick up the goods immediately, avoiding unnecessary delays or missed business opportunities in daily business operations. It can also avoid expensive warehousing fees or losses due to changes in the quality of the goods.
After receiving the import L/C bill presented by the presenting bank, provided that such documents fully comply with L/C terms and conditions, the Importer’s bank shall remit the proceeds to the presenting bank by debiting the Importer’s account. If the Importer applies for a T/R Loan, the bank will reimburse based on this application, given certain terms and conditions fully complied.
After receiving a Export Letter of Credit (Original Letter of Credit/Master L/C), our bank can issue Back to Back L/C (Separate Letter of Credit) for customer who is a trade intermediary and the principal beneficiary of Export Letter of Credit, in accordance with the terms of the Export Letter of Credit, to its supplier for the same lot of goods, so as to provide customers with a flexible payment solution.
By import and export trade financing, our bank helps importers improve the cash flow of and maintain the smooth operation of supply chain, and allows export enterprises to smoothly use the payment of goods received in the earliest possible time and at the same time transfer the risk on receipt and payment of funds.
Import Collection is a convenient alternative to L/C and merely bonded to the Importer’s credit. CMB Wing Lung Bank is entrusted by the remitting bank and acting as the collecting bank to notify the Importer to pay at sight or on a specified date upon the bills and documents presented.
Documents Against Payment (“D/P”) requires the Importer to pay the face amount of the draft at sight.
Documents Against Acceptance (“D/A”) requires the Importer to pay on a specified date. Once the Importer accepts the time draft, the bank releases the documents to the Importer.
(Online application is available.)
Import Invoice Financing is a financing method provided by the Bank to importers. Even if the transaction is on credit, customers can apply for import invoice financing on an open account transaction upon the underlying commercial invoices and shipping documents. Import invoice financing improves the Importer’s cash flow and generally demands simpler documents than the L/C or the document collection.
CMB Wing Lung Bank has established a SWIFT authenticated relationship with corresponding banks across the globe, which ensures that our L/C advising services operate in a secure and resilient manner.
L/C Advising means that after the bank, the bank will review its authenticity in accordance with the relevant provisions of the latest version of UCP, and immediately based on the specific circumstances Notify the beneficiary of the letter of credit or the designated second advising bank after receiving the letter of credit (including L/C amendment) issued by the L/C issuing bank through Mail/SWIFT.
Export bills refers to the business in which the Bank provides financial facilities based on the exporter's application, using the export proceeds as the first source of repayment, after deducting the issuing bank's interbank credit limit and ensuring a sufficient credit line.
Export negotiation means that as a negotiating bank, the Bank uses the export remittances under the LC as the first source of repayment within the issuing bank’s credit limit, based on the application of the beneficiary of the negotiation LC. The documents that have been accepted by the issuing bank under the LC provide financial facilities to the beneficiary based on the payment commitment of the issuing bank.
A transferable letter of credit is a letter of credit that allows the first beneficiary to transfer some or all of the credit to another party, creating a secondary beneficiary.
Fully Transferable
The L/C is fully transferred to the second beneficiary/supplier from the first beneficiary/middleman without any alteration of terms.
Partially Transferable
This L/C enables the first beneficiary/middleman to substitute the draft and invoice submitted by the secondary beneficiary/supplier and gain from a spread in the value exchanged. The transfer must be made under the same terms and conditions stated in the original
L/C with exclusion of the following: amount, unit price, expiry date, and presentation period and shipment date.
Export collection means that the exporter/customer, in accordance with the agreement between the buyer and the seller, prepares the relevant shipping documents and bills of exchange after shipping the goods for export, and entrusts our bank to submit the documents through the Iissuing bank/Importer bank collects payment from the importer. As the exporting bank, the Bank handles collection business, including collection under D/A, D/P or L/C. Our bank meticulously examines the submitted documents, providing professional advice to customer to ensure document consistency, thereby avoiding potential delays or rejections by the issuing or collecting bank due to discrepancies.
(Online application is available.)
Export invoice discounting means that the exporter/customer, transfers the current or future accounts receivable based on the export sales contract which are entered into between the exporter and the importer to the Bank. Based on the export invoice and shipping documents provided by the customer, the Bank provides financing business before receiving payment from the buyer, converting the customer's receivables into working capital.
Packing loan means a short-term trade financing offered by CMB Wing Lung bank to the Customer/L/C beneficiary for procuring required goods upon the receipt of a L/C. It facilitate the purchase of raw material, manufacture, warehousing and transportation of the export products.
Customer/L/C Beneficiary can use this product to improve cash flow before shipment and use the receipts under the documentary to repay packaging loans for achieving efficient liquidity management.
Purchase Order Advance means the seller/exporter may apply for purchase order financing with a valid order or a trade contract to start raw material procurement, production and pay transportation expenses before shipment. After the shipment of goods, customers can repay through different export financing products provided by the Bank, which is flexible and convenient.
A standby letter of credit is usually issued in the name of the advising bank, at the applicant's risk, to enable the party named in the letter of credit to obtain bank financing from the advising bank.
A Letter of Guarantee is a written commitment issued by our bank to the beneficiary at the request of the applicant to ensure that the applicant or the guaranteed person performs its obligations under the contract signed with the beneficiary.
U-BANK@CMBWLB Services support on line application for our customer who have been maintaining credit facility with us as below :
1. “L/C Application”, “L/C Application Amendment”, “Import Invoice Financing Application”, “Export Invoice Discounting Application”
2. “Bills Services Enquiry”
3. Create “Template”
Login to U-BANK@CMBWLB Services, and select “Trade Finance Services” -> Fill in related application and submit application. If you cannot access the Trade Finance Services, please contact your relationship manager for details.
(i.e. submit L/C amendment application, modify L/C application have been submitted to U-BANK@CMBWLB, request for correction of L/C details.)
If you need to modify, return or reject the authorized L/C application via U-BANK@CMBWLB, login to U-BANK@CMBWLB Services, and select “Trade Finance Services - L/C Application Amendment” to operate accounts.
Login to U-BANK@CMBWLB Services, and select “Trade Finance Services” -> “Template”. Template allows customer to save the frequently use information such as applicant’s details, beneficiary’s details, terms and conditions, etc. Customer can retrieve your own templates when conducting transactions, saving time for input.
click hereto view the schedule of Trade Finance Services fees.
For any enquiries, please contact U-Bank@CMBWLB Services Hotline at (852) 3711 0117 or (86) 4008 822388.
Service Time: Monday to Friday 9:00 AM to 6:00PM (Hong Kong).
Service Time: Monday to Friday 9:00 AM to 6:00PM (Hong Kong).
Risk Disclosure Statements
- The above images are for reference only.
- The above services are subject to the relevant terms and conditions of the respective services. For enquiries, please call our customer service hotline at 852-2309 5555 or contact our relationship manager.
- China Merchants Wing Lung Bank, Shenzhen Branch is a branch of the Bank in the PRC.
- To borrow or not to borrow? Borrow only if you can repay!