Traditional Documentation Services

HSBC can provide Import and Export Collections services. Collections are cheaper and simpler for the importer than Documentary Credits because the collecting bank does not have any financial interest or commitment, so there are fewer formalities. The importer can inspect the documents (but not the goods themselves) before paying for them.

Benefits

• Bridge the gap between trading on Documentary Credit and Open Account.
  
• The importer pays for the goods only when they are happy that the shipping documents are stipulated in the underlying contract.
  
• Provides the importer with a degree of security that if the paperwork is correct, the corresponding shipment should be in order too.
  

HSBC can handle all DCs and amendments directed by the issuing banks for advising to exporters (beneficiaries). DC Confirmation is a service where a Bank adds its own undertaking to pay, in addition to that of the Issuing Bank, on condition that the documents submitted by the DC beneficiary are fully compliant.

Benefits

• The authenticity of DCs is checked by export trade specialists.
• DCs are ensured to reach customers within 24 hours of receipt from the issuing bank.
• DC Confirmation: Double protection, reduces exposure risk and payment is assured by HSBC against compliant documents even if the DC issuing bank is unable to pay.

HSBC can provide you with a commitment to negotiate clean documents without recourse as soon as the documentary credit is issued. This is the riskiest option - it exposes HSBC to bank risks for a longer period, and still leaves open the chance that documents will not be accepted by the issuing bank, while foregoing our right to take action directly against the issuing bank.

Benefits

• Customer receives immediate payment on presentation of shipping documents under DC transaction.
• Reduces non-payment risk.
• No credit facilities required.
• Experienced HSBC staff check documents and correct errors to ensure the documents are compliant.

HSBC can arrange the credit that permits the beneficiary to transfer all or some of the rights and obligations under the credit to a second beneficiary or beneficiaries.

Benefits

• No facilities required.
• Easy and prompt to arrange.

HSBC can arrange the following loans:

Loans Against Exports - Manufacturing Advance: provided to exporters to meet manufacturing costs such as the purchase of raw materials.

Loans Against Exports - Packing Credit: provides an exporter with finance after goods have been manufactured but before they are shipped. This smoothes the exporter's cash flow while the goods are being packed and waiting for shipment. The advance is repaid when the goods are shipped, if the documents were negotiated with the exporter's bank.

Import Loan: The bank will lend money to companies to facilitate importation of goods for manufacturing for sales locally or export.

Benefits

• Provides you the working capital to fulfill orders.
• Provides you the option to win new business by offering more competitive terms to trading partners.