Standard Chartered Bank (China) Limited provides an integrated solution for the well accepted negotiable payment instrument in China, namely Bank Acceptance Draft (BAD) and Commercial Accepted Draft (CAD). It covers BAD acceptance and Draft (BAD and CAD) discounting for electronic ones.
In the past year, Standard Chartered China has provided commercial draft issuance and discount services to more than 500 companies, serving customers in 108 industries. The annual transaction volume was nearly 15,000, with a total transaction value of USD3.3 billion. Our clients are mainly from electrical machinery and equipment, retail and wholesale trade, chemicals, furniture textile, etc.
- BAD is commonly used as forward liquidity payment instrument
- Under BAD acceptance, the payment date of the Accepted Draft shall mirror the agreed payment terms between seller and buyer. The draft amount should be in line with customer’s trade model and business nature
- Short term nature, with maximum tenor of six months
- The discount interest rate depends on the credit rating of the draft accepter, discounting tenor and market liquidity status. Typically, a low interest rate is applied for BAD discounting
- Bank accepted draft discounting and finance company accepted draft discounting are both supported
- As an international bank, the BAD accepted by Standard Chartered Bank China is well recognized and rated in the local market
- Simple and fast discounting process: Same-day draft discounting could be arranged if all conditions are met and application should be submitted before cut off time.
- Shorten the cash conversion cycle for the sellers hence improve the funds efficiency
- As a member of Shanghai Commercial Paper Exchange (SHCPE), Standard Chartered Bank China proactively participated in the draft market to fulfill your diversified needs
For more information, please contact your relationship manager, transaction banking sales consultant, or visit sc.com/cn
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