Importing

Importing international goods carries its own set of risks. As a leader in international banking, HSBC can help with import letters of credit, import documentary collections, shipping guarantees or airway bill releases and import financing.

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New suppliers, new sources, new business. All in an import documentary letter of credit

For importers who are looking for new suppliers, one of the primary considerations is deciding on appropriate payment terms that ensure that the goods supplied, are the goods ordered. With an import documentary letter of credit, the importer requests his bank to undertake payment for the goods to his exporter, if certain documentary conditions are met.

Key Benefits:

Demonstrates importers credit-worthiness –this may help open access to new or foreign suppliers
Importer pays only if conditions of the documentary credit are met
Improves cash flow as importer pays after goods have been shipped
Minimizes financial risks as importer is not required to prepay the supplier
Eliminates extensive credit investigations on importer - responsibility for payment rests with the issuing bank
Supports the ability of suppliers to obtain bank financing since in many countries documentary letters of credit are pledged as security for working capital loans

Key Features:

Variable Terms for payment settlement and tenor can be incorporated
Payment released only when the shipping documents are presented and are in conformity with the terms of the documentary letter of credit
Subject to Uniform Customs and Practice for Documentary Credits (2007 Revision) International Chamber of Commerce Publication No, 600