LC Discounting Forfeiting
Benefits for the customers
- Timely replenishment of working capital thanks to VietinBank making advance to Bill of exchange/export bills under deferred L/C;
- Guarantee payment risk in case of insolvency from L/C issuing bank;
- Benefit from competitive discount rates thanks to VietinBank's negotiation of low rediscount rates with correspondent banks.
Features
- VietinBank discounts deferred export L/C documents for customers and sells the L/C-based receivable to correspondent Bank.
- The correspondent bank pay up-front at a discount on a non-recourse basis to VietinBank and receives payment from L/C issuing bank upon bill of exchange maturity.
- Exporters apply LC deferred-based payment or negotiate with import partners to switch from at sight L/C to deferred L/C to use this product.
Eligibility conditions
- Corporate Customers discount deferred L/C based bills from 30 to 360 days at VietinBank.
- The correspondent bank agrees to rediscount the set of documents.
- Comply with foreign exchange management regulations, law on anti-money laundering, and regulations by countries.