What is a Return Loan
The repayment loan is a short-term foreign trade loan, which is a special form of acceptance credit. Its essence consists in the fact that the exporter draws a target draft on his bank (rembors bank), which accepts and discounts the bill of exchange on behalf of and for the account of the import bank against submission of the documents. The following relationship arises:
Refund loan process - 11 steps
- First, a sales contract is concluded between the importer and the exporter.
- The importer orders his import bank to open a 90-day cash back loan in favor of the exporter.
- The import bank opens a documentary letter of credit through a German bank and asks it to accept the exporter's bill of exchange drawn on it.
- the Letter of credit-Eröffnungsanzeige der Remboursbank geht an den Exporteur.
- The goods are sent to the importer.
- The exporter draws a 3-month draft bill on Bank RB and submits this together with the documents for acceptance.
- The Remborsbank accepts the bill of exchange and discounts it in favor of the exporter.
- The Remborsbank sends the documents to Importbank and informs it of the acceptance.
- The import bank forwards the documents to the importer, who then has the goods.
- When the acceptance is due, the remuneration bank debits the import bank.
- The import bank charges the importer.
Für den Rembourskredit ist kennzeichnend, dass die Bank des Importeurs (z. B. in Hamburg) eine von dem ausländischen Exporteur auf sie gezogene Tratte gegen Aushändigung der Verschiffungsdokumente (Konnossement‚ Versicherungspolice, Consulate invoice) akzeptiert.
The exporter (overseas) can immediately utilize this bank acceptance through discounting, while the importer's bank is secured through possession of the documents. They only hand them over to the importer in return for other security, e.g. B. against payment, acceptance or warehouse receipt. In this way, the return loan enables the duration of the transport to be bridged financially.