The Bank of America is pushing its Vendor Financing Programme (VFP) - which includes lower cost letters of credit (L/Cs) - as part of it's bid to win potentially lucrative China mandates.

The bank says a recent example of how it is capturing new business with Chinese companies is its recently awarded mandate to help restructure the trade finance arrangements of Dongguan Kingsun Metals and Plastics Manufacturing (Kingsun).

Vendor Financing Programme

Bank of America global product solutions (GPS) says it won the trade finance mandate from Kingsun because of the advantages the VFP provides.

The bank says Kingsun - a manufacturer and exporter of Christmas lighting, barbecue gas grills and steel household products -was seeking a more flexible, efficient and cost-effective solution for its trade financing needs.

Selection reasons

Another reason why Kingsun selected the bank is because the Chinese manufacturer wanted to leverage the bank's relationships with buyers - around 80 per cent of Kingsun's major US buyers are already Bank of America customers, the bank said in a statement.

Through the VFP, Bank of America says it offers lower-cost trade financing solutions including conventional L/Cs, private label L/Cs and open account bills.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.