Commercial Acceptance Draft Discounting | DBS SME Banking China

Commercial Acceptance Draft Discounting

Build your business with improved turnaround time and fast access to funds

Commercial Acceptance Draft Discounting

Build your business with improved turnaround time and fast access to funds

At a Glance

Speed up your turnover and improve your cash flow by selling your Commercial Acceptance Draft (CAD). It is widely accepted in China and enables you to access to fund with low financing cost.

Features & Benefits

Simpler

Once the documents are in order, you can convert receivables into cash quickly and easily

Cost saving

Reduce your cost with our competitive financing rates

Improve your cash flow

Shorten your cash collection cycle by discounting the CAD at DBS

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.

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Trade Finance Pricing Guide

FAQs

	How is the CAD discounting period calculated?
	The discounting period is calculated based on the number of days from the date of discounting to the CAD maturity date.

	Who pays the interest under CAD Discounting?
	Interest can be paid by either the buyer or supplier under CAD discounting, depending on the agreement.

	What is the maximum CAD tenor?
	The tenor of draft on paper is up to 180 days, and the tenor of the draft issued electronically through the People’s Bank of China (PBOC) Electronic Commercial Draft System (ECDS) is up to 1 year.

	What are the major documents provided under CAD Discounting?
	Please contact our Relationship Manager for the full details. Below are some major documents for your reference: Draft Discount Agreement ECDS Service Agreement Original VAT Invoice and Sales Contract / Purchase Order on transactional basis

	How is the CAD Discounting rate calculated?
	Please contact our Relationship Manager for the competitive discounting rate case by case.

	Is CAD Discounting subject to a credit limit?
	Credit limit on CAD Acceptor (normally the Buyer) shall be applied if you are applying for without-recourse CAD discounting. The discounting with recourse are subject to a credit limit on Supplier.