General

What is the credit limit for international trade settlement? Credit limit, also known as "credit limit", refers to the credit limit granted by a bank to its basic customers for a certain amount, that is, the enterprise can recycle such amount within a specified period of time. For example, when an enterprise applies for an export documentary credit of 2 million US dollars a year, the enterprise can use it five times with an amount of 10 million US dollars (the formalities only need to be handled once, and the other formalities are very simple), and 10 times with an amount of 20 million US dollars. On the one hand, it solves the enterprise's short-term capital turnover difficulties, improves the enterprise's capital circulation speed, and also improves the enterprise's capital use efficiency.

The credit limit for international trade settlement in foreign trade transactions includes many aspects. Here is a brief introduction to commonly used institutions.

Application for credit limit in international trade settlement:

1. Open an account in a bank.

2. Submit a credit limit application report to the bank, introducing the basic information of the enterprise, the financial situation of the enterprise, the purpose, type, amount and duration of the credit limit.

3. Copies of the business license of the applicant and the guarantor.

4. The annual financial statements of the applicant and the guarantor for the past three years, and the financial statements of the last month.

5. The applicant's and guarantor's Loan Certificates and loan cards.

8. The foreign-funded enterprises, joint-stock enterprises, joint ventures and associated enterprises shall provide the approval documents of the foreign economic commission. Capital verification report and articles of association of the accounting firm.

7. After being approved by the bank, it can be used after signing a contract with the bank.

Amount and term of credit limit in international trade settlement

The amount of the credit line is generally 50% of the company's net assets, or 10 times of the company's capital, or 30% of the company's annual imports. The term is one year, which can be recycled within the term.

Scope of credit limit in international settlement (foreign trade and export)

The export of credit line includes: credit line, letter of credit (export) mortgage loan line (commonly known as package loan), export documentary credit line, export collection documentary credit, etc.

Way of credit limit in international settlement

The credit line needs to be guaranteed, which can be guaranteed by other companies or mortgaged by real estate.

The above is about the credit line of international trade settlement. I hope it can be helpful to you.