e-Credit Line is a revolving line of credit specifically designed to finance purchases on Alibaba.com from Chinese suppliers. It is an open credit line that you can draw from any time as long as the amount is over US $5,000 and there is credit available. Alibaba.com customers can enjoy preferential rates, no early payment penalties and - more importantly - there is no need to deplete cash reserves while your goods are in transit.
|Competitive Features||e-Credit Line||Other typical business loans|
|Product Structure||Open credit line where you can draw any time as long as the amount is over US $5,000 and you have credit available.||One-time use term loan|
|Type of Tate||
Simple interest rate :
Based on WSJ prime rate and a risk spread.
Factor Rate :
This is not an interest rate, and can make expensive loans appear cheaper.
|Fee||1% or 2% of draw amount; no set up fee or annual membership fee||2.5% of original loan amount|
|Early Pay Off||US $0 - You can eliminate interest costs by paying off any time.||You’re charged interest for the entire loan – even if you pay off early.|
|Total Annualized Rate||6% - 28.8%||35% - 99%|