Working Capital

Bank Acceptance Draft (BAD) Issuance

Improve your working capital by deferring payments

Increase the efficiency of your working capital and defer payment on purchases by issuing a Bank Acceptance Draft (BAD). It is widely accepted in China where you can assure your suppliers of payment and improve relationships by issuing a BAD to cover the cost of the goods you receive. In turn, your suppliers can obtain up to 100% financing with a BAD, and often offer discounts as a result. Choose from a range of amounts and tenures up to six months or a year* to meet your needs. We also offer a consulting service to help you with any concerns or issues you may have with your suppliers.

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 Issuance?

  • Defer paying for your purchases by up to six months or a year*
  • Leverage DBS’ reputation and relationship with banks in China
  • Issue BADs for a minimum commission of just 0.05%
  • Choose a draft amount and tenure to suit your business needs
  • Assure your suppliers of payment upon draft maturity
  • Enhance your relationship with suppliers, who can obtain up to 100% financing based on your BAD
  • Resolve issues with your suppliers with advice from our consultancy service

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. This is in accordance to the guidelines set by PBOC.

How much is the issuance fee?

The issuance fee is 0.05%, as regulated by the People’s Bank of China (PBOC).

What margin should be placed on BAD Issuance?

The margin placed is based on your risk rating and is subject to approval on a case-by-case basis.

Do I need a credit limit in order to utilise this service?

Yes, you will need a credit facility with DBS. For more information, please call us at 4008208988 and our Relationship Manager will assist you.

 

How do I apply?

Simply call us at 400 820 8988 (or +86 400 820 8988 if you're overseas) or visit any of our Branches. You may also email us and our Relationship Manager will contact you as soon as possible.

* Tenures of up to 180 days for drafts drawn on paper, and tenure 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.

Awards
Best SME Financing/Cash (Highly Commended) 2015

Best SME Financing/Cash (Highly Commended) 2015

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