Trade Bills Discounting is a Singapore Dollar facility granted by OCBC Bank to selected customers with good financial standing and integrity to finance their import and export trade transactions. The financing period is usually 30 to 90 days and the trade bill is usually rediscounted on the same day with other banks or individuals to protect the bank's total exposure of the spread quoted to the customer.
Next Steps :
Eligibility for Trade Bills Financing
Finance of import or export
Must relate to import into or export from Singapore. Third country shipment or domestic sale does not qualify
Customer to present original supporting documents to bank for sighting and endorsement such as invoice, Bills of Lading, Airway Bill Endorsement, Letter of Credit etc
Bank to keep a copy of the above documents
Period of financing should not be longer than the tenor of the original bill (for export) and not normally exceed 3 months
Extension of an overdue bill strictly not allowed. If extension is granted, draft should not be sold (as it does not qualify as a liquid asset).
Letter of undertaking to be submitted by customer
Why OCBC Bank ?
We offer customers a wide range of Business Cash Financing opportunities.
Fees and Charges
Interest and charges on trade financing products (e.g. Packing Loans, Export Bills Discounting, Trust Receipt Financing, Trade Bills Discounting) will be based on the rates agreed with the bank
If transaction is in foreign currency and does not involve foreign exchange, a commission at 1/8% (min. $50) will be levied
The commission, rates and charges quoted are usual charges and we reserve the right to charge for additional work on non-standard items
Incidental expenses such as tele transmission costs, postage, courier etc., and correspondent charges, are charged additionally if applicable
