Financing against Accounts Receivable Insurance

By mmuise
Description:

Bank of China (Canada) provides advance financing for sellers of goods and services that have taken out export credit insurance with Export Development Canada (EDC) or other credit institutions recognized by Bank of China (Canada). Financing of such receivables is done on presentation of all relevant export documents, insurance policy receipts and indemnity transfer agreements.


Comments on Funding:

There are two options of financing against ARI available to clients:
1. Financing under ARI with recourse: companies that export on open account terms may take out Accounts Receivable Insurance against non-payment risk by buyers and obtain advance financing from Bank of China (Canada). In this case, Bank of China (Canada) may recover losses from non-payment by the buyer from the applicant.
2. Non-recourse financing under ARI: Bank of China (Canada) may offer financing under ARI without recourse. By tapping this type of financing, clients are able to free up working capital and cash flow, simplify administration of cross-border trading and minimize the risks associated with open-account business.

Deadline: Continuous Intake
Eligibility:

ARI is a specialized financing solution and is primarily aimed at the following clients:

  • Enterprises who have taken out credit insurance to mitigate buyer and sovereign risk.
  • Enterprises who have limited working capital and need to accelerate turnover of accounts receivable.
  • Enterprises requiring increased financing but who have limited available credit lines.
Application Steps:

For inquiries, applicants must call BOCC's service hotline: 1-844-669-5566.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

n/a

About the author
mmuise