Export Invoice Discounting (EID)

Bank of China (Thai) Public Company Limited (BOCT) offers Export Invoice Discounting as a short-term credit solution for sellers who have shipped goods and/or provided services and have submitted a commercial invoice document to BOCT. This credit is provided based on the value specified in the invoice document, with a discount rate subtracted. This service helps exporters receive payments earlier, thereby improving their cash flow.

1. Acceleration of capital turnover: By obtaining finance before the buyer pays for the goods, capital turnover can be sped up.
2. Simplified financing procedures: Financing procedures are relatively more convenient than those of working capital loans.
3. Mitigation of exchange rate risk: Obtaining financing in advance through discount can help avoid adverse changes in foreign exchange rates in the forward market.
4. Seller recourse financing: In the event that the buyer fails to pay at maturity, Bank of China may exercise recourse to the seller.

Sellers who encounter problems with capital turnover under open account transactions.

1. Establish a credit line for export invoice discounting.
2. Submit application for export invoice discounting to BOCT with the required supporting documents, including the commercial invoice and bill of lading.
3. BOCT reviews the application and, if approved, collects service fees and interest from the seller and disburse the loan proceeds to the seller.   
4. BOCT monitors the seller's account to ensure that each EID loan requested by the seller is tied to an underlying transaction paid by the buyer. If the sale proceeds are not received, BOCT will require proof of payment from the seller.
5. On the EID maturity date, the seller is responsible for repaying the principal amount and interest of finance, and BOCT return the credit limit balance to the seller.

Please refer to standard rates released by BOCT via: https://www.bankofchina.co.th/en-th/service/information/service-rates-and-tariffs/service-charges-for-export.html

1. Application for Export Invoice Discounting
2. Commercial Invoice / Invoice
3. Proof of shipment/delivery of goods and/or services, such as Bill of Lading / Air Waybill