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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).
Tailored financing to meet your cash flow needs
As an exporter, you may need additional working capital when you are manufacturing or “packing” your goods. HSBC has various pre-shipment financing options which may be tailored to your specific needs. For example, HSBC works with Export Development Canada (EDC) to provide loans designed to fund pre-shipment costs. Alternatively, HSBC may be able to provide “Packing Credit” or Export Manufacturing Loans to assist in financing work-in-progress needs.
These financing options are meant for trade transactions that are short-term and self-liquidate after the goods have been shipped and documents presented for negotiation to retire the outstanding advance. A credit line is required to be established for this purpose.
Key Benefits:
- Financing is structured to match your business needs and trading cycle
- Ability to accommodate working capital bulges in your order book
- Work-in-progress financing - crucial in a manufacturing process
- EDC’s guarantee reduces capital reserve requirements for HSBC
- Existing operating lines of credit not affected
- Excellent tool for your client acquisition or retention
Key Features:
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EDC’s EGP may be be approved for loans up to 100% of contract costs
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EDC shares pari-passu in all security held by HSBC under the EGP
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Term of loan follows delivery terms of the contract/shipment date of the export documentary letter of credit
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Export documentary letter of credit often used as security
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Packing Credit facilities without documentary letter of credit support may be considered
