Documentary credits: We take the risk for you so you don't have to.
Documentary credits (DCs) issued by HSBC give you and your suppliers comfort and security by helping to mitigate the inherent risks of international trade. The bank substitutes its own credit for that of the importer to pay for goods and services within a prescribed time limit and against compliant documents.
With DCs, payments will only be made upon presentation of the required documents, giving comfort to both buyer and supplier.
Key benefits of DCs issued by HSBC
- Financial strength
- Global network
- Expert assistance
- Vendor support
- Special DC options
Documentary Collections: Taking the hassle out of the paperwork.
Documentary collections are an additional option to documentary credits. Your supplier presents the necessary documents, with instructions, to their bank which forwards the documents to your bank for payment. Your supplier is paid once the payment is debited from your account, with no hidden interest or payment delays.
Types of documentary collection services:
- Documents against payment (D/P) - Import documents are released to you on payment
- Documents against acceptance (D/A) - Import documents are released to you against your promise to pay
Benefits to your business:
- Eliminates the need for credit facilities if no bank finance is required on payment
In situations when your goods arrive before the shipping documents have been processed through the banking system, HSBC can issue a shipping guarantee. This allows you to take possession of the goods without the transport documents. Thus you avoid unnecessary delays and missed business opportunities.
- Shipping guarantees issued by HSBC are widely accepted in the shipping industry around the world
- You don't have to pay storage fees or demurrage charges because you can take control of your goods when they arrive
- Payment is deferred until your supplier's documents are presented
- A shipping guarantee can be issued on your request
Our import trade services are tailored to fit your trading cycle, giving your business access to funding when you need it.