Reduce risks from delay or non-payment when undertaking international trade with help from HSBC Trade and Supply Chain. Our emerging markets-led strategy can help you grow your export business. Benefit immediately from export services with HSBC's international network, which connects you to people and companies worldwide, by requesting your buyers to advise documentary credits (DCs) through us.
Documentary collections
Enjoy a simple, cost-effective and secure means of trading internationally using documentary collections. If your buyer doesn't issue DCs, collections offer the next safest alternative to open account trade.
During a collection, banks act as intermediaries, ensuring that documents are only released against payment or acceptance. Collections offer the seller confidence that they won't lose control of the goods without payment or the promise to pay. Buyers can get a simple and cheaper alternative to DCs through collections, which may enable you to negotiate better terms.
Reduce costs and gain peace of mind with HSBC's documentary collection methods:
- Documents against payment: Documents are released to importers upon payment
- Documents against acceptance: Documents are released to importers against their promise to pay
Contact your local HSBC office to know which service is available to you.
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Documentary credits
Improve the efficiency and security of your international transactions through HSBC's value-added DC services.
Our DC services include:
- DC confirmation: Reduce bank and country risk with a DC confirmed by HSBC. You can secure payment commitments from both the DC issuing bank and the confirming bank with our DC confirmation services. If your documents comply with the terms and conditions of the DC, payment from HSBC will be final
- DC advising: Arrange shipments quickly by letting us check the authenticity of DCs issued in your favour. You can get the full text of the DC by telephone or fax, and receive electronic copies of all incoming SWIFT-based export DCs and advices via e-mail
- DC safe custody: Save storage space and get peace of mind with our free safe custody service, which is offered to all electronic advising customers to ensure that your original DCs are securely stored at the HSBC branch of your choice
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Export finance
Get expert help in export finance from HSBC. Your facilities will be structured around the actual business you do, taking into account your unique requirements at different stages of your trade cycle.
Deal with any funding gaps in your trade cycle through our financing options:
- Pre-shipment finance: Improve your cash flow while you prepare to complete your shipment orders through facilities such as packing credits or manufacturing advances
- Post-shipment finance: Get your funds within 24 hours through our post-shipment finance service, which doesn't require facilities. We may negotiate clean bills of lading and pay the discounted value of the invoice concerned
If inconsistencies are found in the documents, you may negotiate under reserve or against an indemnity, or send the DC issuing bank for authorisation to negotiate despite the inconsistencies, and send the documents to the issuing bank for approval and payment.
Contact your local HSBC office to know which service is available to you.
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Factoring
Your business may be in great shape, but you are at times still 'cash poor' because your funds are locked up in receivables. Settle your cash flow problems by getting the working capital you need with our Export Factoring financial packages.
Take control of your cash flow by working with a factoring line of credit, which gives you greater flexibility than what a traditional overdraft can offer.
Export Factoring is a financial package that includes receivables financing, credit protection, sales ledger management and collection.
- Financing: Turn your capital tied up in receivables into cash at an agreed percentage of the invoice value
- Credit protection: You can mitigate your buyer risk through the credit protection option. Receive 90 to 100 per cent credit cover for your sales to a wide range of countries
- Receivables management: Get the essential management information you need to run your business by outsourcing your sales ledger management and collection to us
Contact your local HSBC office to know which service is available to you.
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Forfaiting
Exporting can be risky. Rejecting a buyer's request for credit runs the risk of losing the deal; accepting exposes you to defaulting and cash flow problems. While traditional bill discounting by an exporter's local bank may alleviate liquidity pressure, it still doesn't address the importing country's commercial, credit and political risks.
Reduce the above risks through our forfaiting service, a form of bill discounting provided without recourse to the exporter in case of non-payment at maturity. Forfaiting allows exporters to convert a credit sale into a cash sale, and pass on the financing costs to the importer.
Contact your local HSBC office to know which service is available to you.
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