Definition
Pledge Loan - Warehouse Receipt is arrangement where the borrower files for working capital loan at Hua Xia Bank with the securities on its legal holding (possession) of warehouse receipt. Warehouse receipt refers to the property title certificate written by logistics service company (i.e. custodian of warehoused goods) accredited by Hua Xia Bank, which certificate is used for warehouse pickup by the goods owner or the title owner.
Functions and Features
The service resolves the loan guarantee problem without adding burdens on the companies. It provides financing facility for companies and improves the corporate fund utilization. It is capable to promote goods trade, accelerate inventory turnover, and increase profit.
Applicable Clients
Body corporate and other organizations of economic activities eligible for loans under General Provisions of Loans of the People's Bank of China, with good credit standing, legally ownership on warehouse receipt, and the right to pledge warehouse receipt
Currency and Tenor
RMB is the currency in the loan. The loan tenor depends on the actual corporate operation. The maximum tenor for each loan is within half a year in principle and may be extended for less than one year under special circumstances.
Interest Rate
The loan interest rate is defined as per the benchmark interest rate and spread regulated by the People's Bank of China. The interest rate is stated in the loan contract.
Application Documents
Hua Xia Credit Application (Working Capital Loan); borrower business license, body corporate code certificate, tax registration certificate, loan card (certificate); legal representative qualification, ID, signature and CV; borrower corporate article of association and production and operation overview; borrower financial statement of the most recent three years audited by the CPA firm; in case the company's existence is not up to three years, the applicant needs to supply financial statements of all periods since founding; document from borrower officer with signing authority permitting borrowing. In case the borrower has the mechanism of board of directors, the borrower shall supply board approval for borrowing and the name list of the board directors and their signature specimen; condition of pledged goods; information of warehouse company that carries the pledged goods; and other borrower documents as required by Hua Xia Bank.
Note: This page is for reference only, part of the business to local outlets announcement with specific provisions prevail.
