Trade Services and Finances, Import and export trade, Corporate Financing

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Best Regional Bank in Asia for a record 10 consecutive years - Euromoney
Best Regional Bank in Asia for a record 9 consecutive years - The Asset Best
Overall Trade bank in Asia - Trade Finance Awards for Excellence 2009

Export Services and Finance
- L/C advising, confirmation, transfer and forfeiting
- Export L/C negotiation, discounting and collection
- Export non-L/C negotiation and discounting
- A/R forfeiting and financing
- Pre-shipment financing
Import Services and Finance
- L/C issuing
- Trust Receipt and Import Loan
- Shipping Guarantee (S/G)
- Import Non-L/C Documentary Collection (D/A or D/P)
Domestic Trade Services and Finance
- A/R forfeiting and financing
- Supply chain financing
- RMB draft discounting
Other products and services
- Guarantee, Standby L/C, etc.

Account Receivable Financing

As open account has become commonplace in a buyer-centric market place, suppliers are facing extended cash flow cycles and increased liquidity pressure. Addressing suppliers’ particular difficulties, Citibank finances account receivables from their quality buyers.

Applicable Customers

With a big proportion of account receivable (AR) is tied in long collection terms (over 2-3 months), companies need to optimize AR management for long-term and stable relationships with their buyers of good credit standing.

Product Advantages

Shorten average collection period and optimize working capital management
Enhance asset liquidity
Create natural hedging to reduce foreign exchange risk of the AR
Provide timely AR management report

An electronic manufacturer with reputable overseas buyers and annual sales RMB 100million.

Customer's Difficulties and Needs

The customer is selling on an open account terms, with long collection term of 3 to 6 months. Its properties are under leasing agreement. Lack of collaterals has posed major challenges for the customer to access external financing.

Solutions at Citibank

Account Receivable (AR) Financing: Citibank's vast experience in global trade enables it to facilitate AR that have creditable and reputable buyers, with lower financing prerequisites. The company pays back once it receives the buyer's payments.

Disclaimers

The content is intended for general information of Citibank products only. It does not constitute an offer or promise for Citibank’s provision of such products, nor does it constitutes any warranties or undertakings regarding the characters of such products. The specific right and obligations regarding the relevant products shall be subject to the terms and conditions of the definitive contracts, agreements or other documents to be entered into both parties.

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