Bank of America Merrill Lynch (BofA Merrill) has introduced enhancements to its electronic commercial draft system (ECDS) and trade receivables finance (TRF) capabilities, as part of an expansion of its China trade and supply chain finance (SCF) product range.
“The expansion of ECDS to BofA Merrill’s BANA Beijing and BANA Guangzhou branches strengthens the firm’s evolving China supply chain finance programme,” the bank added.
The electronic solution facilitates domestic renminbi (RMB) draft settlements, offering a source of low-cost and short-term trade and SCF to corporate trade clients. As a component of the broader supply chain finance product suite, the ECDS platform also addresses both short-term liquidity and risk mitigation requirements of clients.
With the expansion of the ECDS platform to BANA Beijing and BANA Guangzhou, BofA Merrill ’s three China branches have the full capability to process electronic drafts. Prior to receiving approval for expanding the ECDS platform, the solution was available for corporate trade clients through the bank’s Shanghai branch.
BofA Merrill also recently announced a series of enhancements to its TRFprogramme. Under the expanded programme, the bank purchases open account receivables or invoices from clients that are due from eligible buyers.
The programme benefits clients by monetising receivables while honouring existing payment terms. Furthermore, corporate trade clients can improve the buyer relationship and generate greater sales through longer payment terms and mitigating the buyer concentration risk via limited recourse financing.
“Expanding our SCF platform with innovative solutions and broader geographic reach is a critical element of our strategic goal of better connecting with our clients in China,” said Cathy Dou, head of global transaction services, China, at BofA Merrill.
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