Credit limit of Hong Kong beneficiary of standby letter of credit

The maximum credit line of the Hong Kong beneficiary of the standby letter of credit is HK$ 6,543,800+0,500, but Hong Kong real estate mortgage, financial statements and bank approval are required; Or provide cash deposit as collateral and open a letter of credit at the ratio of 1: 1, which is smaller than the credit line obtained by the first method.

1. The standby letter of credit is actually a bank guarantee. Because American law stipulates that banks cannot issue letters of guarantee, they use "standby letter of credit" instead of "letter of guarantee", but the essence is the same, that is, the bank guarantees the beneficiary that the applicant will fulfill the relevant obligations in the contract signed with the beneficiary (generally referring to the payment obligation). If the applicant fails to fulfill the payment obligation, the issuing bank guarantees to pay the beneficiary.

2. Credit line refers to the stock management index of short-term credit business approved by commercial banks for customers, which can generally be divided into single loan credit line, borrowing enterprise line and group borrowing enterprise line. As long as the credit balance does not exceed the corresponding business variety index, regardless of the accumulated amount and the number of issuance, the business department of a commercial bank can provide short-term credit to customers quickly, that is, enterprises can easily recover the bank's short-term credit funds, thus meeting customers' requirements for fast and convenient financial services.

3. Characteristics of credit line:

(1) The credit line can be recycled, so the enterprise's financial planning becomes clearer and more organized, and there is no need to arrange funds for regular business.

(2) Meet the basic financing needs of enterprises. Credit line A single credit line is set according to various credit business types such as loans, letters of credit and letters of guarantee, which basically covers the main financing needs of customers. With the consent of the bank, the quota of a single product can be adjusted and cross-exchanged, which improves the utilization rate of the quota.

(3) Simplify the enterprise credit approval procedures. After obtaining the credit line, the customer decides the use mode and performance time of the credit line by himself according to the agreement, without reporting it to the credit bank for approval one by one, thus avoiding the time of single credit approval.

4. Classification of credit line: The arrangement of credit line is flexible, and the total credit line can be subdivided into loan line, letter of credit line, export bill of lading line, letter of guarantee line, bank acceptance line and discount line of acceptance bill. The credit line is applicable to all kinds of credit business with a term of less than 1 year (including 1 year), and the term of bid guarantee, performance guarantee, advance payment guarantee, customs payment guarantee and maritime guarantee under the opening guarantee line can be extended to more than 1 year.