bank

Bank Acceptance Draft Issuance

Improve your working capital by deferring payments

Bank Acceptance Draft Issuance

Improve your working capital by deferring payments

At a Glance

Increase the efficiency of your working capital and defer payment on purchases by issuing a Bank Acceptance Draft (BAD). 

location

Transferrable

BAD is transferable, which can be endorsed to other companies for settlement of debt; or to a bank for collection or financing (discounting) 

business

Widely-acceptable

BAD is one of the most popular settlement instruments used in domestic trade in China 

Features & Benefits
time

Flexible draft tenor

BAD has a flexible tenor to fit your business requirement (physical draft tenor up to 6 months while electronic draft tenor up to 1 year), which can be used to lengthen buyer’s days-payable-outstanding (DPO) 

currency

Improve cash flow

With DBS China’s payment undertaking under BAD, your supplier can discount the draft and obtain financing from their banks, or DBS China itself 

money

Save cost

Competitive pricing to save your cost financially 

How to Apply

Call us on 400 821 8881 or visit any of our Branches for more details. You may also email us and arrange our Relationship Manager to call you. 

Download PDF
Trade Finance Pricing Guide
FAQs
Can I use BAD to pay for services provided?

Yes. According to the regulations in China, you can use BAD to cover the cost of both goods and services as long as it is part of a genuine underlying trade. We may however require supporting documents to demonstrate this. 
What’s the maximum BAD tenure?

You can choose from tenures of up to 180 days for drafts drawn on paper, and up to a year for drafts issued electronically through the People’s Bank of China (PBOC) Electronic Commercial Draft System. 
How much is the related fee and charge to BAD Issuance?

Please refer to the Trade Finance Pricing Guide for the detail fee and charge to the BAD Issuance. The issuance fee is 0.05%. For the Risk Exposure Fee, please contact our Relationship Manager on case-by-case basis. 
Do I need a credit limit in order to use this service?

Yes, you will need a credit facility with DBS. For more information, please call us at 400 821 8881 and our Relationship Manager will assist you. 
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