Products for Exporters

Exporters can face significant risks when they undertake international trade, not least the fear of delay or non-payment. Whether you are a new or long-established exporter, HSBC Trade Services can help you to reduce risks, allowing you to focus on growing your export business.

To benefit from HSBC's export services, you do not need to have special facilities. Simply request your buyers to advise documentary credits through us and benefit immediately from our international network. What’s more, if you are the beneficiary of a documentary credit issued by an HSBC Group office, you are entitled to the same level of service excellence as any of our regular customers.

Export Collections

We can collect your commercial / shipping documents through our banking network. For exporters, it is a more secure option than trading on open account terms because the shipping document will be delivered to the importer only against payment or an acceptance to pay on due date. We also offer instant email functionality, providing details on the export collection transactions, to a designated person in your office through our EDCA offering.

Export Financing

We can address funding gaps in your trade cycle and support your business, by providing you export financing options in foreign currency (at LIBOR linked rates) or in Indian Rupees, both at the pre-shipment and post-shipment stage.
We can discount your export receivables by negotiating bills drawn under a DC or discounting bills under collection, with the latter available both for D/P (Documents against Payment) and D/A (Documents against Acceptance). We can reduce country and bank risk, exposure to interest and exchange rate fluctuations and turn your receivables into cash. We also provide instant email advice.

Advance Remittances

Any payments into the country by overseas parties are processed expeditiously and credited to your account promptly.

DC Advising

A Documentary Credit ("DC") opened by the overseas importer's bank, will be checked for authenticity and couriered across to your doorstep. With a presence in over 83 countries and over 10,000 group offices, and global correspondent banking relationships with over 2,500 banks, we have Swift key arrangements with most of the major banks, to facilitate straight through processing of DC advising. We also offer a real time electronic DC advising functionality wherein the DC is sent through an automated email to a designated person in your office.

DC Confirmation

Reduce bank and country risk effectively by enjoying the security of payment commitments from both the issuing bank and the confirming bank. HSBC is one of the largest institutional banks with global correspondent banking relationships with over 2,500 banks. If HSBC confirms the DC, and your documents are presented in compliance with the DC terms, payment from HSBC will be final.

DC Transfer

Ideal for buyers working with sourcing agents who require credit cover. If you are a sourcing agent or the first beneficiary, we can provide guidance on the terms and conditions of your DC and assist in either fully or partially transferring your DC to the ultimate supplier.

Trade Solutions

We have designed a special programme for exporters, supplying to certain large reputed buyers in the US and Europe. As an established supplier to such large reputed overseas buyers, you are entitled to enjoy a range of extra benefits when you present documents to HSBC for negotiation under Documentary Credits (DCs) issued by other HSBC group offices. These extra benefits include:
Lower overseas bank charges viz. handling charge, courier, cable charges, discrepancy fee, reimbursement fee; which are to the account of beneficiaries:

• Faster communication and quicker turnaround times. As both the import and export legs of the transactions are handled by one bank you should receive funds 6 days earlier on average, saving you interest charges
• Peace of mind that documents are only checked once and held by the local HSBC office until acceptance; and
• Opportunities for Pre and Post shipment finance.

Forfaiting

We can arrange for an offshore financing on your export receivables to countries esp. high / medium risk with medium to long credit periods. The schematic below describes the forfaiting transaction flow:

Advisory services on any export transaction - Our local experts understand trade thoroughly, and they can provide value to your business by performing advisory on a host of trade issues, including structuring DCs for your export business.

Terms and Conditions apply

The schematic below describes the Forfaiting transaction flow

HSBC has formulated a "Gold Card Scheme" for its exporter customers.

Key features of the Gold Card Scheme are as follows:

Eligibility criteria*:
Exporters who

• Route 100% business through HSBC or a minimum routing of export transactions aggregating USD15M per annum and
• Comply with all terms and conditions of sanction and
• Who have had no irregularity / adverse feature in their account for the past 3 years

Those exporter customers who meet the eligibility criteria will be issued a letter confirming gold card status, valid for a period of 3 years.

Fixation of Credit Limit

Limit will be sanctioned for a period of 1 year. Renewal will be subject to an annual review, which will be completed within the time frames specified below provided however that all relevant financial information is furnished at least 30 days prior to the renewal date.

• Disposal of fresh application - 25 days
• Renewal/Review of limits - 15 days
• Sanction of ad hoc limits - 7 days
  
  A stand-by limit of up to 20% of the assessed limit may be made available to meet peak season requirements on request from the company.

Rate of Interest

Rates of interest are as per the extant Reserve Bank of India guidelines and are subject to change from time to time at the discretion of the Bank. As a Gold Card exporter you will be eligible for a maximum interest rate of Libor +200 bps p.a. + out - of pocket expenses on pre-shipment finance and post-shipment finance in foreign currency. Rupee finance will be made available to you at an agreed rate subject to ceiling prescribed by RBI.

Other Benefits

• Tariff - A minimum of 20% off on our standard published tariff for trade related services.
• Free issuance of bank realization certificate.
• Free offering of electronic banking.
• Free Documentary Credit Safe Custody Service.
• One-point contact within Trade Services for transaction information / query resolution relating to your trade transactions, etc.

For further details on the eligibility criteria, please do not hesitate to contact your Relationship Manager or send an email to Mr. Aman Singla at amansingla@hsbc.co.in