Packing Loan

Packing loan is a type of a short-term loan issued by the Bank of China (Thai) Public Company Limited (BOCT), This type of loan is commonly used in international trade when an exporter (Beneficiary of L/C) receives a letter of credit from a buyer but requires financing to fulfill the order to finance their purchase, production, and shipment costs.

1. Expansion of trade opportunities can help exporters to run their business smoothly and seize trade opportunities, even in the event of a shortage of capital or the failure to satisfy advanced payment requirements.
2. The reduction of tied-up capital alleviates the pressure of working capital because the exporters' own capital will not be occupied during the lead time for purchases, production, and other processes.

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

Exporters who often face a shortage of working capital, while overseas importers may be hesitant or disagree to make payments in advance but agree to open a Letter of Credit (L/C) as a more secure form of payment.

1. Application for Packing Loan
2. Sales contract
3. Original Letter of Credit (Advice through by BOCT only)

1. The exporter shall sign a financing agreement to set up a Packing Loan credit facility and open an account with BOCT.
2. Submit a packing loan application, sales contract, original of L/C and other pertinent materials.
3. The packing loan shall be transferred to the exporter's account after the bank's approval.
4. The exporter shall submit export documents under the L/C to BOCT after completion of purchase, production, and shipment with the packing loan.
5. The foreign bank effects payment at sight/at maturity, and BOCT shall recognize and treasures inward remittances as repayment  for the packing loan.