Foreign customers to do long-term credit to buy a truck for long-term letters of credit car business object must have the import and export companies the right to operate and have an independent legal entity. As the main provider of long-term credit car business long-term trade financing, so speaking from the period, capital * Easy car more suitable for long-term credit business. The following conditions for long-term credit car transactions: one, in order to improve the financial statements, the need to export receivables from the balance sheet thoroughly removed; 2, accounts receivable to recover before the experience of other investment opportunities, and the expected benefits higher than the long-term credit car all fees and charges; 3, accounts receivable to recover before the encounter cash flow difficulties, and unwilling to accept recourse financing with a form or taking up valuable bank line of credit. Application requirements an enterprise must have legal personality and the import and export operation rights; 2, in the package bought by suppliers to open local currency or foreign currency accounts, with the package to buy the import and export settlement provider to maintain a stable business, reputation and record of receipt and payment of the normal (commercial bank or bank subsidiary bodies); 3, financing for trade with a real background, trade contracts, trade in both countries must comply with the relevant legal provisions, the importing country to obtain the consent of foreign exchange management departments; 4, take advantage of this financing to exporters the importer should agree to pay the purchase price in installments in order to bills of exchange, promissory note or other debt certificates issued in turn by a fixed time interval in order to meet long-term credit car business needs; 5, unless the package agreed to buy a business, or else claims certificate must be received by the package bought by a bank or other institutions the unconditional and irrevocable manner to pay or provide a separate security guarantees; 6, the banks required by other conditions. Application data packets to buy exporters to apply for long-term supplier credit car business, they must provide the following information: 1, exporters briefing by the Commerce and Industry Bureau annual inspection of the enterprise legal person business license copy; 2, importers briefing ; 3, delivery conditions and import permits (if required); 4, letters of credit and all changes under the trade copy of the contract, a full set of export documents and signatures, proof of authenticity of documents and other documents; 5, bond, or cashier order a copy and the "assignment"; 6, the banks requested additional information. Bidding process 1, signed a letter of credit car import and export contracts and long-term contracts, while the importer apply for a bank guarantee; 2, exporters shipments, invoices and bills of exchange will be sent to the importer; 3, importers, his acceptance money orders or cashier opened to the banks require guarantees. Bank agreed to guarantee, the guarantee letter and acceptance of bills of exchange or promissory note after the warranty line sent by the exporter; 4, the exporter will be a full set of export documents (of title) to the package buyers, and to provide import and export contracts, business license, the recent financial statements and other materials; 5 received valid acceptances Issuing Bank, the package bought by deducting interest and related charges discounted notes, without recourse to the money paid to exporters; 6 Forfaiter the package agreed to buy the Notes through the security line prompt payment to the importer; 7, importers to pay the security line, secured line of the remaining money after expenses to the package buyers. Forward letter of credit fees include charges for car service discount interest, commitment fee and a grace period of three parts discount, fees and charges by the specific contract. The discount rate from the nominal amount of the calculation made by a certain discount rate. The discount rate generally divided into two kinds of compound interest discount rate discount and direct. The first is a calculation of APRs are usually interest-bearing compound interest every six months once. The latter is based on face value and expiration date discount rate derived from the percentage. The discount rate generally LIBOR interest rate as a benchmark, taking into account the risk of importing country, the issuing bank's credit risk, the discount period on the basis of length and add a certain amount of points. From the maturity date to the actual collection day period known as the "payment grace period" would normally buy a package included in the discount grace period, the fee discount. Package to buy from exporters and to enter into an agreement to forfeiting the actual bills to buy time for the date of the commitment period, in this period, the package is going to raise funds to buy companies, forming the actual cost of capital and opportunity costs, charged to exporters commitment fee. Generally charged once a month, if the commitment period less than one month may also be collected in conjunction with the discount rate. Search for more posts related topics: customer long-term foreign credit Trucks