Introduction
The Domestic Factoring with Recourse refers to a financial service where the seller transfers the local accounts receivable arising from credit sales of commodity trades to Hua Xia Bank in exchange of comprehensive financial services such as financial facilities, accounts receivable management, and accounts receivable collection. The seller is held jointly liable for buyer's payment upon due date, that is, in case that the buyer fails to pay Hua Xia Bank for the accounts receivable, Hua Xia Bank has the right of recourse against the seller. In addition, the seller is obligated to repurchase the accounts receivable in question upon Hua Xia Bank's request. 

Functions and Features  
Hua Xia Bank provides full and professional accounts receivable related services to improve efficiency in financial management and reduce financial cost for companies. For sellers, the un-mature accounts receivable is turned into immediate cash, which improves its financial structure. The seller is therefore able to provide more competitive forward payment conditions to develop market and boost sales. The transferee bank of accounts receivable is in charge of credit inspection, financial management, and debt collection, which result in cost savings in operations and management. The buyer may take advantage of favored forward payment conditions to accelerate fund turnover and to generate greater return. It saves the expenses in issuing the bank acceptance or letter of credit. 

Target Clients
Corporations of good credit track records, sound accounts receivable management system, good financial conditions and the corporation's product in stable quality, high degree of standardization, and easy for storage.

Currency and Tenor
RMB is the currency in service. The factoring tenor is no more than one year in principle. 

Price
Factoring interest rate: executed according to Hua Xia Bank's rules on RMB working capital loan interest rate. 

Service Fee
There is factoring service fee assessed against the seller. The service fee is over 0.1% of the net accounts receivables according to the degree of service complexity over the underlying accounts receivable.

Application Materials
A) The Seller shall provide the following materials: 
1) Factoring application; 
2) Company certificates including the company profile, articles of association, capital verification report, business licence under the annual check, corporate code certificate, certificate of tax registration, loan card (certificate); 
3) Qualification certificate and ID document of the legal representative, and in case there is authorization, letter of authorization and authorized person's ID document; 
4) Resolution by the corporate decision-making body or person that permits to apply for the service at Hua Xia Bank; 
5) General introduction of the company’s production and business; e
6) Audited financial statements of the most recent two years and the two most recent financial reports (monthly or quarterly statements); and 
7) Description of company's accounts receivable management system and breakdown of accounts receivable.
B) The Buyer shall provide the following materials: 
1) Company certificates including the company profile, articles of association, business licence under annual check; 
2) Recent financial statements and audited financial statements of the past two years.
C) Accounts receivable documents: 
1) Original or certified photocopy of the sales contract; 
2) Shipping order or bills as the proof of shipment; 
3) Invoices; 
4) Bill of lading, inspection certificate, advance payment (down payment) certificate; and 
5) Letter of Confirmation on Accounts Receivable written in format stipulated by Hua Xia Bank.