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INDEPENDENT ADVISORS | Staff Reporter, China

BofAML upgrades China trade capabilities

Here's how clients will benefit.

In a release, Bank of America Merrill Lynch Global Transaction Services today announced solution developments in its China trade and supply chain finance product suite. 

Consistent with the ongoing expansion of its supply chain finance business in China, Bank of America Merrill Lynch has recently introduced enhancements to its Electronic Commercial Draft System (ECDS) and Trade Receivables Finance (TRF) capabilities.

The expansion of ECDS to Bank of America Merrill Lynch’s BANA Beijing and BANA Guangzhou branches strengthens the firm’s evolving China supply chain finance program.

The electronic solution facilitates domestic renminbi (RMB) draft settlements, offering a source of low-cost and short-term trade and supply chain financing 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, Bank of America Merrill Lynch’s three China branches now 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 Bank of America Merrill Lynch’s Shanghai branch.

The bank has also recently announced a series of innovative capability enhancements to its Trade Receivable Financing program. Under the expanded program, Bank of America Merrill Lynch purchases open account receivables or invoices from clients that are due from eligible buyers.

The program benefits clients by monetizing receivables while honoring 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 supply chain finance 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, Bank of America Merrill Lynch.

Bank of America Merrill Lynch’s supply chain finance program provides China corporate trade clients with a holistic, buyer centric solution. Bank of America Merrill Lynch has continued to invest and expand in its supply chain finance program to buy­ers and sellers across Asia Pacific. The program is offered via manual and automated channels, offering full flexibility to clients. 

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