Woori Bank launches Usance remittance service for importers

Woori Bank has launched ‘Woori Remittance USANCE’, a new trade finance service designed to reduce the liquidity burden on importing companies. The service integrates Usance functionality into overseas remittance-based import transactions.

Under this system, the bank pays the overseas exporter on behalf of the importing company, allowing the importer to repay the bank after a specified period. While Usance has traditionally been used in Letter of Credit (L/C) transactions, this new product can be applied to direct remittance transactions without an L/C, addressing the market trend where remittance-based trading is increasing.

Key benefits include: - Importers can defer payment for up to one year, easing working capital pressure. - Exporters receive payments more quickly, increasing collection stability. - Simplified procedures by removing the need for complex document exchanges between banks. - Flexibility to use both remittance-based and L/C-based transactions under a single agreement.