Import

With more than 140 years of leadership in financing trade around the world, no one has greater experience in bringing buyers and sellers together than HSBC. Our knowledge of what matters to companies of all sizes in all locations allows HSBC to tailor individual solutions to their needs - as well as those of their entire supply chains. Contact HSBC today to see how we could put the right structures in place for You.

Trade and Supply Chain offers structured financing solutions for businesses including short-term trade loans tailored to commercial payment terms and a variety of finance solutions based on Documentary Credits, Documentary Collections, Bank Guarantees and Standby Documentary Credits terms. Our target market includes importing and exporting firms, construction companies, state organisations, commercial intermediaries.

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If your business involves import and export of goods or services, HSBC Trade and Supply Chain can work with you to assist in taking full advantage of all the international business opportunities we offer. Our trade products and services are designed to provide business with efficient and secure options of financing your trade transactions.

We can issue bank guarantees and L/Cs to protect you from many of the risks involved in international trade as well as to secure your obligations under tenders and commercial contracts. With HSBC global network we can arrange issuance of instruments in any country worldwide where we operate.

Import Documentary Credit (Import DC)

An Import Documentary Credit is a commitment given by Your (the buyer’s) bank, to the seller (Exporter), that they will make payment upon presentation of a pre-agreed, specified set of documents. The time scales, despatch dates and other terms can be built into the DC as required.

Advantages

• DCs are one of the most popular methods for settling international trade transactions because they are honoured throughout the banking system and offer security to both buyer and seller. The seller wants security of payment; the buyer wants an assurance that payment will be made only after dispatch of the specified goods. In some countries, settlement by DC is insisted upon by the authorities, who may wish to control imports or the associated outflows of foreign exchange
• You can be much more confident that the goods You have ordered will be as specified in the contract, and delivered at the agreed time and place
• Each DC can be tailored to Your requirements governing shipping, delivery, insurance and quality inspection. This in turn allows You to use the goods or sell them on with confidence, thereby fulfilling orders with different customers
• Since payment is guaranteed by Your bank, trading on DC terms provides security for Your supplier. This gives You extra power to negotiate a price discount on Your imported goods – most exporters will typically build in heavy price penalties to protect themselves from the risk of late payment
• While using Import DCs You will have opportunities to finance Your transactions efficiently through exercising deferred payment DC options (where You will be able to pay after receipt of the goods) and short–term import loans

Import Bills for Collection

The exporter despatches the goods to You, and instructs their bank to send the shipping documents to Your bank, along with instructions about collecting payment. The bank acts on behalf of the exporter’s bank to collect payment from You, or a promise that You will pay at a later date if You have agreed this with the exporter. This promise normally involves You accepting a Bill of Exchange. Under the agreement, the bank will not release the shipping documents until payment or acceptance has been made. On pre-agreed terms the Bank can guarantee Your payment of the accepted Bill of Exchange by means of avalization.

Advantages

• You pay for goods only when You are happy that the shipping documents–such as invoices, insurance certificate and bills of lading – are as stipulated in the underlying commercial contract
• Provides You with a degree of security that, if the paperwork is correct, the corresponding shipment should be in order, too
• Easy and speedy to set up, making them particularly suitable for transactions that need to take place
• Often used to bridge the gap between trading on Documentary Credits and open account, where a relationship is building up between buyer and supplier that indicates mutual trust
• There are possibilities to finance Your transactions through short term import loans