HSBC offers tools and services that reduce some of the financial risk associated with your export activities. Included here is information about export credit insurance, contract bonding and international guarantees, pre-shipment finance, confirmed letters of credits, and Trade Invoice Non-Recourse Financing Facility (TINRFF).
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As an exporter, you have won your bid for a new contract, and your overseas buyer is prepared to issue a documentary letter of credit (D/C) in your favor. However, you learn that the D/C is from a bank that you are not familiar with, and you are not comfortable with the country risk of the buyer.
HSBC may be able to use our extensive international network and global knowledge to “confirm” your export D/C. By confirming the D/C HSBC undertakes to make payment under the D/C provided all terms are complied with. This ensures that you are protected from non-payment by the issuing bank and the country risk associated with the D/C.