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Structured Trade Finance for Trade with Korean Companies

Factoring

Export Factoring

A form of trade financing provided by purchasing trade bills which occur from open-account export transactions on credit (including transactions on s D/A basis), on a non-recourse basis

  • Discount rates(Libor + Margin) and Factoring fees are charged. The applicable margin is determined considering the creditworthiness of the buyer.
  • Eligible tenure of trade bills: less than 180days.

Open-account export transactions : are transactions upon which the exporter despatches shipping documents after sending the export items, and the foreign buyer remits the payment for the items directly to the exporter’s account after a certain period of time.

Non-recourse basis : means the exporter is not responsible for the payment even when the foreign buyer fails to fulfill its debt obligation for its financial difficulties.

Import Factoring

A form of guarantee or cover in favour of an eligible buyer in the U.K or Europe in connection with Korea Eximbank’s export factoring business. Under normal circumstances, the Bank also acts as a factoring collection agent.

  • Fees are determined depending upon the creditworthiness of the buyer.
  • Eligible tenure of trade bills : less than 180 days

Forfaiting

Forfaiting is financing to exporters in the from of discounting trade bills from export transactions under the Letters of Credit issued by banks in developing countries on a non-recourse basis.

  • Eligible banks more than 330 banks in 55 countries
  • Eligible tenure of trade bills : 30 days ~ 2 years