Traditional Documentation Services

Documentary Credits

A DC is an undertaking by HSBC, acting on behalf of the importer, to make payment for goods or services provided by the supplier within a prescribed time limit and against compliant documents. A DC provides comfort to the buyer that payment will only be made upon presentation of the required documents.

Import Finance

Whether you use documentary credits or collections for your imports, there may be times when you need HSBC's support in funding to allow you to fulfill your trade commitments.

Shipping Guarantee

HSBC can provide shipping guarantee services against margin or a pre-arranged trust receipt facility. This will enable local importers to obtain immediate delivery of goods which have arrived at the port before receiving shipping documents such as Bills of Lading.

Documentary Collections

HSBC can provide a choice of documentary collection methods, each offering you peace of mind as well as helping you to reduce costs:

Documents against payment (D/P) - documents are released to importers upon payment.

Documents against acceptance (D/A) - documents are released to importers against their promise to pay.

Documentary Credits

HSBC can provide you with a range of Documentary Credit services:

DC confirmation:: With a DC confirmed by HSBC, you can enjoy the security of payment commitments from both the DC Issuing bank and HSBC, the confirming bank. This helps reduce bank and country risk. If your documents are presented in compliance with the terms and conditions of the DC, payment from HSBC will be final.

DC advising: HSBC can check the authenticity of DCs issued in your favour, enabling you to start arranging shipment quickly by pre-advising the full text of the DC by telephone or fax. You can also subscribe to our electronic advising service to receive electronic copies of all incoming SWIFT-based export DCs and advices via e-mail. All of these help improve communication and efficiency.

DC Safe Custody: HSBC also offers a free safe custody service to all electronic advising customers. This is to ensure that your original DCs are securely stored at a HSBC branch of your choice, saving you storage space and providing you peace of mind.

Export Finance

HSBC's range of export financing options can help to accommodate any funding gaps in your trade cycle:

Pre-shipment finance - we can offer facilities aimed at easing your cash flow while you complete your shipment orders.

Post-shipment finance - we may negotiate clean documents and pay the discounted value of the invoice concerned.

Factoring (Invoice Discounting)

HSBC Export Factoring is a comprehensive financial package that includes receivables financing, credit protection, sales ledger management and collection.

Financing - Mobilize your receivables by turning your capital tied up in receivables into cash, at an agreed percentage of the invoice value.

Credit protection - Mitigate buyer risk. We can offer 90% to 100% credit cover of your sales to a wide range of countries.

Receivables management - Outsource your sales ledger management and collection to us, and we will provide the essential management information you need to run your business.

Forfaiting

HSBC Forfaiting is designed to assume all of the above risks. Essentially a form of bill discounting, yet provided without recourse to the exporter in the event of non-payment at maturity. Forfaiting therefore enables exporters to convert a credit sale into a cash sale, and potentially pass on the financing costs to the importer.