Importing

A Documentary Credit (DC) is a bank's guarantee of payment against specific documents and conditions, and may be used to finance your imports instead of other types of finance such as an import loan or an overdraft. The security of an HSBC guaranteed payment might also enable you to increase the credit period your supplier is willing to extend to you.

Benefits

• Ensures control as payments are made only after your supplier has met the terms and conditions you have set
• Mitigates the risks of international trade with suppliers you have not met
• Strengthens your negotiating position by offering a guaranteed payment
• Increases security to both you and your supplier

Do you regularly deal through an intermediary party when conducting trade? Does your intermediary have problems obtaining credit facilities? If so, HSBC can help facilitate this trade with our Transferable Documentary Credits.

Benefits

• Allows you to retain control over your transaction as all parties involved follow the same terms and conditions
• Allows your supplier to source goods without having to secure funds or credit facilities
• Strengthens your negotiating position with suppliers by offering a 'guaranteed' payment
• Enables your agent to transfer the credit to the ultimate suppliers

Do you act as the intermediary party in a transaction when conducting trade? HSBC's Back-to-Back Documentary Credits are separate credits where the DC you receive from your buyer is used to guide the terms and conditions of the DC you send to your supplier to make payment smooth and safe.

Benefits

• Minimises discrepancies as HSBC thoroughly checks your and your supplier's documents
• Your business enjoys greater security when a transaction is in progress
• Reduces the need for finance by using export proceeds to pay for your imports
• Allows you to control the relationship by protecting the identity of your supplier

Does your supplier require payment assurance but you prefer not to use a documentary credit (DC)? HSBC's Documentary Collections against payment (D/P) and against acceptance (D/A) are a simple and cost effective way to offer protection to your supplier. Under D/P terms, import documents, which usually include title to the goods, are released to you upon payment. Under D/A terms, documents are released to you against your promise to pay.

Benefits

• Gives your supplier complete confidence knowing that the goods will only be released to you against payment or your promise to pay
• D/A terms provide supplier credit as you receive the goods before you pay for them
• Provides a much safer alternative to paying in advance or giving a deposit
• Offers a cheaper alternative to DC transactions and, as there is no DC to issue, you do not require credit facilities
• Reduces lead times once terms are agreed as your supplier does not have to wait for a DC to be issued before fulfilling your order

Instant@dvice is a unique service provided by HSBC. It allows you to receive a full non-negotiable copy of your export and/or import Documentary Credit* (DC) and amendments via e-mail immediately upon receipt from the Issuing Bank. Efficiency, convenience and cost savings

Enhanced accuracy in document preparation:

You can "cut" the relevant text from the copy of the DC* sent to you via e-mail and "paste" it onto trade documents where required thereby saving time and avoiding unnecessary discrepancies.

Greater efficiency and convenience:

Improves efficiency by enabling your office to forward a non-negotiable copy of your export DC to your buyer, freight forwarder, insurance provider and other trade partners for their reference or action. Sends you the import DC copy via e-mail immediately upon issuance by HSBC, allowing you to forward it to the supplier and other trade partners, saving time and communication costs.

Improved logistics management

Reduce the time spent waiting for phone calls, faxes and even delivery of hard copy advices of your transactions with HSBC. Upon receipt of the DC*, you can start your manufacturing and sourcing process immediately.

Reduced Messenger Expenses

By signing up for our free DC Safe Custody service, you will be able to reduce expenses incurred otherwise for collecting the DC from our counters. With this service, your original DC* will be securely kept with HSBC, minimising the chances of your DC being lost thus saving you additional cost in getting a replacement. In addition, it helps you to save the cost and inconvenience of handling and storing your original DC.

As an export customer:

• You can nominate up to five e-mail addresses to receive a copy of your export DC and subsequent amendment(s) to minimising any slip-ups in internal circulation
• You can nominate only one e-mail address to receive other export advices

To enjoy this service, all you need is an export and/or import account with us and to insist that your DCs* are advised through HSBC. You can then nominate the most suitable e-mail address in your company to receive the e-mail advices plus DC copies.

note:
Our Instant@dvice is available FREE of charge, but the normal DC advising fee will apply.
*Only available for DCs received via SWIFT.
SWIFT is a private message transmission network operated by the Society for Worldwide Interbank Financial Telecommunication.
SWIFT is a secure, dedicated global communication network that supports a range of financial messaging services.