Build your business with improved turnaround time and fast access to funds
Speed up your turnover and improve your cash flow by selling your Bank Acceptance Draft (BAD). It is widely accepted in China and enables you to cash your drafts in with low financing costs for immediate access to funds. Choose a repayment tenure of up to six months or one year, depending on whether the draft is drawn on paper or issued electronically. You can also leverage our relationships with more than 20 banks that accept BADs to gain access to cash.
As required by PBOC, starting from 1 January 2017, all commercial drafts worth RMB 3 million or more must be handled through electronic system (ECDS); from the beginning of 2018, all commercial drafts worth RMB 1 million or more should be in principle issued electronically. For more details, please click here.
Why choose DBS Bank Acceptance Draft Discount?
The discounting period is calculated based on the number of days from the date of discounting to the BAD maturity date.
Interest can be paid by either the buyer or supplier under BAD discounting, depending on the agreement.
You can choose from tenures of up to 180 days for drafts drawn on paper, and up to of a year for drafts issued electronically through the People’s Bank of China (PBOC) Electronic Commercial Draft System. This is in accordance to the guidelines set by PBOC.
The following documents are providedunder BAD discounting:
The BAD Discounting rate is determined by the cost of funding at the time of discounting plus a risk premium depending on the accepting bank’s credit rating, which is benchmarked against prevailing market rates.
No credit limit applies if you are applying for without-recourse BAD discounting, however facilities with recourse are subject to a credit limit.
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