HSBC Bank USA, N.A.
Trade and Supply Chain
International Payment Methods
Prepared For:
Global Supply Chain
Management Conference
HSBC OVERVIEW
HSBC Group – Global Network
 Global Network
supporting our clients
and their suppliers
 Largest Asian Branch
Network
 Local Decision Making
 Trade legacy dating back
to 1865
 Local Customer and
Marketing support
Europe
Armenia
Austria
Belgium
Channel Islands
Cyprus
Czech Republic
France
Georgia
Germany
Greece
Hungary
Ireland
Isle of Man
Italy
Luxembourg
Malta
Monaco
Netherlands
Poland
Russia
Slovakia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Offices
10
1
2
35
1
3
440
1
13
27
11
14
8
3
4
54
2
1
17
6
4
4
3
18
304
1,654
Asia-Pacific
Australia
Bangladesh
Brunei Darussalam
China
Hong Kong Special
Administrative Region
India
Indonesia
Japan
Kazakhstan
Korea, Republic of
Macau Special
Administrative Region
Malaysia
Maldives
New Zealand
Pakistan
Philippines
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam
Offices
34
9
12
124
334
72
90
10
2
15
6
48
1
10
9
26
26
15
55
1
4
Services are provided by about 9,500 offices in 85 countries and territories
Associated companies are included in the network of offices
As of August 4, 2008
3|
Americas
Argentina
Bahamas
Bermuda
Brazil
British Virgin Islands
Canada
Cayman Islands
Chile
Colombia
Costa Rica
El Salvador
Honduras
Mexico
Nicaragua
Panama
Paraguay
Peru
United States
of America
Uruguay
Venezuela
Offices
247
8
15
1,673
3
299
13
2
33
40
84
86
1,625
3
83
6
11
1,627
5
1
Middle East/Africa
Algeria
Bahrain
Egypt
Iran
Iraq
Israel
Jordan
Kuwait
Lebanon
Libya
Mauritius
Oman
Palestinian
Autonomous Area
Qatar
Saudi Arabia
South Africa
United Arab Emirates
Offices
2
6
55
1
13
3
3
1
6
2
12
6
1
7
86
5
18
HSBC Group
Strength in North America – full coverage in all three markets
Canada



Largest foreign bank in Canada (7th of all)
299 offices with over 6,000 employees
Fully integrated corporate, investment banking,
and global markets platform
United States

Canada


One of the largest financial institution in the US
with 53,000 employees
Fully integrated corporate, investment banking,
and global markets platform
> 400 bank branches & > 1,300 Consumer
branches in 48 states
USA
Mexico


Mexico
Other North America

4|
3rd Largest bank in Mexico 1,625 bank branches,
4500 ATMs.
Full range of services
15 branches in Bermuda, 8 in the Bahamas, 3 in
BVI, and 13 in the Cayman Islands
HSBC Group
Strength in South and Central America – full coverage in key economies
Central America.
Mexico




Honduras
El Salvador

Nicaragua
El Salvador: 84 offices / branches
Honduras: 86 offices / branches
Costa Rica: 40 offices / branches
Nicaragua: 3 office / branch
Panama: 83 offices / branches
Venezuela
Costa Rica
Brazil
Panama

Columbia

4th largest branch network with 1,673 branches /
5,000 ATMS, with Banistmo + 1,690 branches
Assets of USD 10Bn and largest consumer
finance company with 14M customers
Argentina
Peru
Brazil

Paraguay
6th largest bank, 247 offices and branches and
largest insurance company
Remaining South America
Chile
Uruguay


Argentina



5|
Peru: 11 offices / branches
Chile: 2 offices / branches
Uruguay: 5 offices / branches
Columbia: 33 offices / branches
Venezuela: 1 office / branch
HSBC Group
Strength in Europe – full coverage in key economies
Strength in all three of Europe’s
major economies—leader in the
UK & France
Number of offices/ branches
Sweden
Russia
Ireland
Netherlands
UK
Poland
Belgium
Germany
Czech Republic
France
Switzerland
Armenia
Spain
Italy
Turkey
Greece
Malta
6|
Armenia
Austria
Belgium
Channel Islands
Cyprus
Czech Rep.
France
Germany
Georgia
Greece
Hungary
Ireland
Isle of Man
Italy
Luxembourg
Malta
Monaco
Netherlands
Poland
Russia
Slovakia
Spain
Sweden
Switzerland
Turkey
United Kingdom
10
1
2
35
1
3
440
13
1
27
11
14
8
3
4
54
2
1
17
6
4
4
3
18
304
1,654
HSBC Group
Strength in Asia – unparalleled coverage and capabilities
Strength in all Asian Economies –
leader in HK and leading foreign
bank in China and India
Number of offices/ branches
Japan
Korea
China
Pakistan
Taiwan
India
HK
Bangladesh
Vietnam
Macau
Thailand
Philippines
Sri Lanka
Malaysia
Brunei
Singapore
Indonesia
Australia
Mauritius
7|
New Zealand
Australia
Bangladesh
Brunei Darussalam
34
9
12
China
Hong Kong SAR
India
124
334
72
Indonesia
Japan
Kazakhstan
Korea, Republic of
Macau SAR
Malaysia
Maldives
New Zealand
Pakistan
Philippines
Singapore
Sri Lanka
Taiwan
Thailand
Vietnam
90
10
2
15
6
48
1
10
9
26
26
15
55
1
4
HSBC Group
Strength in the Middle East– growth through acquisition
True Local Presence
Turkey
Lebanon
Israel
Egypt
Jordan Iraq

HSBC has experience dealing with the Middle East
since 1889. Since then, our correspondent and
subsidiary network have expanded extensively.

HSBC Amanah trade products support the increasing
demand for Islamic banking; tailored to the needs of
customers who conduct operations according to
Shariah principles
Iran
Acquistions Strengthen HSBC’s Offering
Kuwait
Qatar
Saudi
Arabia
Bahrain
UAE

A 40% stake in Saudi British Bank

A 46.5% stake in British Arab Commercial Bank
(BACB)

HSBC-Bank Egypt merger (94.5% HSBC Stake)

A 70% purchase of Dar Es Salaam Investment Bank in
Iraq
Oman
Long-Standing Correspondent Relationships

8|
Correspondent relationships with over 150 local and
international banks
MAJOR RISKS
Major Risks
► Political Risk

War, civil disturbance, or revolution

Expropriation

Inconvertibility of local currency into dollars or other hard currency. (Transfer Risk)
► Commercial Risk/Business Risk
 Disputes between buyer and seller.
 Controlling title to goods pending payment.
 Customer illiquidity or insolvency
 Inability to finance company “investment” in export accounts receivable
 Control of quality of goods.
 Working capital tied up
 Increasing reliance on bank debt.
► Documentary Risk
► Interest Rate Risk
► Foreign Exchange Risk
10 |
Trade and Supply Chain & HSBC
► Banks major role in International Trade is to assist clients in
 Mitigating risk
 Effecting Payment
 Providing a level of trust and integrity to the transaction between two parties that are
frequently not well known to each other
► In any trade arrangement, a conflict of wants exists between:
 Supplier
 Wants payment for the goods
 Wants payment prior to shipment of the goods
 Buyer
 Wants to receive the correct goods
 Wants goods at the right time
 May want credit terms
► Trade and Supply Chain assists in bridging the gap between these conflicting
wants
11 |
METHODS OF PAYMENT
Payment Methods
► The choice of payment is determined by:
 Buyer’s Credit Standing
 Supplier’s Financial Condition
 Competition for the Sale
 Industry Practice
 Amount of the Transaction
 Regulatory Environment
► Primary Payment Methods:
 Payment in Advance
 Open Account
 Documentary Collections
 Documentary Letter of Credit
13 |
What is Trade Finance About? Risk Management
Internal
Customers
Exporter
Least Secure
Importer
OPEN ACCOUNT
Most Secure
COLLECTION - DA
COLLECTION - DP
LETTER of CREDIT
CONFIRMED L/C
Most Secure
14 |
ADVANCE PAYMENT
Least Secure
Relying on Counterparty risk
PAYMENT IN ADVANCE
OPEN ACCOUNT
Payment In Advance/ Open Account
► Payment in Advance:
 Buyer remits funds before the goods are shipped
 Supplier ships after the funds are received
 Buyer at risk:




Non-shipment by the seller
Quality of goods shipped
Exchange controls frustrating payment
Negative impact on cash flow
► Open Account
 Goods dispatched directly to Buyer
 Buyer pays on receipt/ after a specified period
 Supplier at risk:
 Non-payment by Buyer
 Exchange controls may frustrate payment
 Negative impact on Supplier’s cash flow
16 |
DOCUMENTARY COLLECTIONS
What is Trade Finance About? Risk Management
Internal
Customers
Exporter
Least Secure
Importer
OPEN ACCOUNT
Most Secure
COLLECTION - DA
COLLECTION - DP
LETTER of CREDIT
CONFIRMED L/C
Most Secure
ADVANCE PAYMENT
Least Secure
Documentary Collections
► Definition
 A payment mechanism initiated by the Exporter, using the services of a bank, to collect
payment from the Importer
 This is done by forwarding documents, most importantly title documents, through agreed
banking channels
► Types of Payment
 D/P: Release of Documents against Payment- Documents are not released until payment
is made by the Importer
 D/A: Release of Documents against Acceptance- Documents released upon the promise
of payment at a future date as evidenced by a draft drawn on and accepted by the Buyer
19 |
Documentary Collections
1. Sales Contract
Importer
Exporter
(Drawee)
6. Drawee makes
payment
(Drawer)
2. Goods Shipped
5. Drawee notified of
arrival of documents
8. Payment
less charges
3. Documents
Presented with
Collection Order
7. Payment less charges
Collecting
Bank
Remitting
Bank
4. Documents sent to Collecting Bank
20 |
Documentary Collections- Risk Profile
BUYER
Benefits:
1) Supplier credit may mean no other finance
required
2) If D/A terms goods can be used/inspected
before payment
Benefits:
1) Under D/P It is possible to maintain control
of the goods through the Banks.
2) Under D/P, documents are not released until
payment is made.
3) Cheaper than Letter of Credit
3) Under D/A, the accepted draft provides
legal recourse to the buyer.
Key Risks:
Key Risks:
1) Shipment schedules and documentation cannot
be controlled.
1) Since there is no financial guarantee of a Bank
to effect payment, the Buyer can always reject
making payment or demand to pay a lesser
amount and hence not accept the shipment.
2) If payment is made against documents, D/P,
then the importer is unable to inspect the goods
prior to payment.
3) No examination of documents by the Bank.
21 |
SELLER
2) Under D/A, there is the risk that the buyer will
either not pay or overextend the terms provided.
LETTERS OF CREDIT
What is Trade Finance About? Risk Management
Internal
Customers
Exporter
Least Secure
Importer
OPEN ACCOUNT
Most Secure
COLLECTION - DA
COLLECTION - DP
LETTER of CREDIT
CONFIRMED L/C
Most Secure
ADVANCE PAYMENT
Least Secure
Documentary Letters of Credit
► Definition
 A written undertaking by a bank
 Given to the Supplier at the Buyer’s request
 Promising to effect payment of a stated amount at a stated time
 Against presentation of documents in compliance with the terms and conditions stated in
the Credit
► Types of Payment
 Sight LC
 Usance LC
24 |
Documentary Letters of Credit
1. Sales Contract
Importer
Exporter
(Applicant)
2. LC
Application
5. Goods Shipped
8. Payment /
Documents Released
10. Payment to
Beneficiary
(Beneficiary)
6. Documents
Presented
9. Payment by Issuing Bank
Advising
Issuing Bank
7. Documents Presented to Issuing Bank
3. LC Issued
25 |
Bank
4. LC
Advised
Letters of Credit- Risk Profile
SELLER
BUYER
Benefits:
1) Only obliged to pay after documentary
evidence that the goods have been shipped
and presentation of compliant documents.
2) Control over shipment schedules and
timing.
Benefits:
1)
The exporter has the Issuing Bank’s
undertaking to pay against compliant
documents regardless of the financial
capacity of the Buyer.
2)
Ability to Confirm and/or Discount drafts.
3) Ability to work with enhanced supplier base
Key Risks:
Key Risks:
1) Issuing Banks make “payment” determination
based purely on the documents presented that
appear on their “face” to be compliant with the
terms of the LC. There is no absolute certainty of
receiving the correct goods. “Banks deal in
documents, not goods.”
1) A high percentage of presentations made
under LCs are discrepant therefore making the
payment obligation of the issuing entity null and
void.
2) Import LC’s require credit facilities to be in
place or cash collateral, which can affect the
company’s cash flow.
26 |
2) Depending on the country the goods are being
shipped to, Country & Bank Risk can negate a
major protective factor of LC’s.
**Two key factors for discrepancies are poor
documentation and late shipment/presentation.
Documentary Letters of Credit
► Remember- Banks deal in Documents, not goods!
 Importer must still pay if exporter’s documents comply with letter of credit.
► Governed by the following regulations:
 Uniform Customs & Practice for documentary credits ICC No. 600 (2007 revision)
 International Chamber of Commerce- Publication Number 600 (1JUL07)
27 |
TERMINOLOGY
Terminology
► Applicant
 Buyer/ Importer/ Account Party
► Beneficiary
 Seller/ Exporter/ Drawer
► Issuing Bank
 Importer’s bank
 Guarantees payment against correct documents
► Advising Bank
 Correspondent Bank- close to seller, but not always seller’s bank
► Confirming Bank
 Located in beneficiary’s country
 Adds “guarantee” of payment
► Negotiating Bank






29 |
Correspondent Bank
Close to Seller
Often advising bank
Always the confirming bank (if any)
Sometimes the paying bank
Checks and processes documents
Terminology
► Paying Bank
 May be the negotiating bank
 May be the advising bank
 May be the issuing bank
► Accepting Bank
 Usance Letter of credit
 Drawee of draft
30 |
Incoterms
► Group E
EXW
Ex Work
FCA
Free Carrier
Main Carriage
FAS
Free Alongside Ship
Unpaid
FOB
Free on Board
CFR
Cost and Freight
Main Carriage
CIF
Cost, Insurance and Freight
Paid
CPT
Carriage Paid To
CIP
Carriage and Insurance Paid To
DAF
Delivered at Frontier
DES
Delivered Ex Ship
DEQ
Delivered Ex Quay
DDU
Delivered Duty Unpaid
DDP
Delivered Duty Paid
Departure
► Group F
► Group C
► Group D
Arrival
31 |
Incoterms
► Any Mode of Transport
Including Multimodal
32 |
EXW
Ex Work (…named place)
FCA
Free Carrier (…named place)
CPT
Carriage Paid To (…named place of dest.)
CIP
Carriage and Insurance Paid To (named place of
dest.)
DAF
Delivered at Frontier (…named place)
DDU
Delivered Duty Unpaid (…named place of dest.)
DDP
Delivered Duty Paid (…named place of dest.)
► Air TransportFCA
Free Carrier (…named place)
► Rail Transport
FCA
Free Carrier (…named place)
► Sea and Inland
FAS
Free Alongside Ship(…named port of dest.)
► Waterway Transport
FOB
Free on Board (..named port of dest.)
CFR
Cost of Freight …named port of dest.)
CIF
Cost, Insurance and Freight (…named port of
dest.)
DES
Delivered Ex Ship (…named port of dest.)
DEQ
Delivered Ex Quay (…named port of dest.)
Export Letter of Credit- Key Requests
► Request:

Irrevocable (confirmed) letter of credit
► Advise to:
 Full address of bank’s foreign trade department
► Negotiation:
 Freely negotiable
► Reimbursement:
 Must be on a bank in the USA and authority must be given to HSBC Bank to claim
reimbursement by CABLE or debit account
► Charges:
 All banking charges in the USA are for account of the buyer/seller.
 All banking charges outside the USA are for account of the buyer/seller.
 In case of time draft, any discount and acceptance charges are for the account of
buyer/seller.
► Domestic LC:
 Ask the applicant to request their issuing bank to send letter with authorized signatures to
negotiating bank.
► Other considerations:
 Confirmation, latest shipment date, expiration date/ what counter, partial shipment,
inspection certificate, boycott clause
33 |
Common Discrepancies
► Credit expired
► Late presentation of documents
► Late shipment
► Short shipment
► Credit amount exceeded
► Shipment from/to incorrect ports
► Presentation of incorrect insurance
► Insurance coverage not in credit currency
► Under-insured
► Inconsistent documents
► Description of goods differ on credit and invoice
► Draft and invoice amounts differ
► Consequences:
 Confirmation, if any, is voided
 Guarantee to pay by issuing bank is voided
 Result: lost protection of the letter of credit
34 |
Importers- Key Points
► On the application:
 Beneficiary section: telephone number of exporter
 Control the shipment with latest shipment & presentation date
 Terms of sale
 Inspection Certificate
 Bank charges, specify for whose account
► REMEMBER- BANKS ONLY DEAL WITH DOCUMENTS! IMPORTERS MUST PAY IF
EXPORTER’S DOCUMENTS COMPLY WITH THE LC.
35 |
BEYOND THE BASICS
Trade Cycle
Exporter
Importer
Purchase Order Contract
Invoice
|
Raw
Materials
| |
Packing
Aval/Accept
International
Shipping
Domestic
Shipping
.
Manufacturing
|
Shipping
Docs.
Arrival
|
|
Inventory
Loading
A/R
Delivery
|
|
Payment
Maturity
Sight
Usance Period
Letter of Credit
Prepay
Open A/C
Confirmation
Pre Export Loans (L/C)
EXIM etc
Back to Back/Transferable LCs
Docs.
Docs.
Prepared Presented
Collections
Export
Factoring LCs/Discount
Forfaiting/Aval
Export Insurance
|
Payment
Confirmed Letter of Credit
► When a bank, other than the Issuing Bank, adds its undertaking to pay under the
Letter of Credit
 Usually the exporter’s own bank is the Confirming Bank
► Why is a Confirmation necessary?
 Beneficiary doubts the Issuing Bank’s ability to pay (e.g. bank risk, country risk, or
exchange controls)
 Beneficiary needs payment on presentation of documents
 Beneficiary wants “without recourse” financing
38 |
Confirmed Documentary Letters of Credit
1. Sales Contract
Importer
Exporter
(Applicant)
2. LC
Application
5. Goods Shipped
8. Payment /
Documents Released
10. Payment to
Beneficiary
(Beneficiary)
6. Documents
Presented
9. Payment by Issuing Bank
Advising/
Confirming Bank
Issuing Bank
7. Documents Presented to Issuing Bank
3. LC Issued
4. LC
Advised
Confirmed Letters of Credit (cont’d)
► Used to mitigate issuing bank risk and country risk
► Structure the letter of credit to ensure that documents are presented correctly
against the letter of credit.
 We typically work with our clients to secure a “sample” letter of credit from the foreign
bank to review the terms before the letter of credit is issued.
► Discounting of the drafts
 If the Buyer is asking for extended terms, and is located in an area with high interest rates
(ex.- Latin/South America), may have the opportunity to offer them 30/60/90/180 day
terms (in select countries we may have an opportunity to offer even longer terms)
 HSBC would discount the drafts using US interest rates- extremely attractive to the Buyer
► In a program such as this, the Exporter would be offering its customers a low
interest rate loan while reducing Exporter letter of credit costs. By getting HSBC
involved early enough in the process, we may have a relationship with either the
Buyer in country, or a correspondent relationship with the Buyer’s bank. In
either case, we may have the opportunity to finance them directly. Commonly
referred to as a Banker’s Acceptance, this form of finance is a time draft drawn
on and accepted by the exporter. The bank’s acceptance of the draft is a formal
acknowledgement of the bank’s unconditional promise to pay at its maturity.
40 |
Direct Documentary Collections
► Service that facilitates payment for international shipments utilizing both HSBC
as the collecting bank and the Buyer’s bank as payment agents. Both banks act
as intermediary collection agents. This is a low cost alternative to letters of
credit.
► Under a Documentary Collection, the drafts and documents are forwarded to the
bank for processing. Under a Direct Collection documents are sent out directly
by the Supplier or Supplier’s Freight Forwarder
 Supplier is sent a receipt to then track the payment.
► Used when there is a high level of trust and confidence between the Buyer and
the Supplier.
► Advantages to Exporter:
 Enhances competitive position because collections are low cost and there is no credit
exposure to buyer.
 Banks monitor the collection and automatically send out periodic tracers. Goods don’t
exchange hands until payment from buyer’s bank is received.
 More secure than open account. Documents are controlled by agent banks until payment
or the draft is accepted
 Governed by internationally accepted rules and regulations.
► Disadvantage to Exporter:
 Less secure than a letter of credit or cash in advance terms
 Documents are not reviewed for discrepancies.
41 |
Direct Collections
1. Sales Contract
Importer
Exporter
(Drawee)
5. Drawee
makes payment
2. Goods Shipped
4. Drawee notified of
arrival of documents
Collecting
Bank
3. Documents
Presented with
Collection Order
6. Payment less charges
(Drawer)
7. Payment
less charges
Remitting
Bank
Direct/Documentary Collections with an AVAL
► Exporter may require that its customer’s bank provide an “Aval”
 The “Aval” is the act of subscribing one’s signature at the bottom of a promissory note or
bill of exchange: this is an act of surety ship by the party signing, in favor of the party to
whom the note or bill is given.
► Advantages to the Exporter:
 More secure because supported by the availability under the customer’s line of credit, at
no additional cost to the Exporter. The cost to the customer is typically less than that of a
letter of credit.
► Disadvantage to the Exporter:
 Less secure than cash or a letter of credit from a highly rated bank.
43 |
Open Account-Enhanced By Export Insurance
► Through our trade services team and our partnership with Euler Hermes, HSBC
can help identify which of your customers in certain geographic regions qualify
for open account terms secured by export insurance. At times this alternative
can be a cost effective.
► Advantage to the Exporter:
 Ability to customize a program in which the country and level of coverage can be matched
with your desired exposure levels.
► Disadvantage to the Exporter:
 The cost of insurance is borne by Exporter, and must be passed on to the customer
through some form of price increase.
44 |
Standby Letters of Credit
► Any Letter of Credit, which represents an obligation to the beneficiary on the
part of the issuer
 to make payment on default by A/C party
 to repay money borrowed by A/C party
 to make payment on buyers indebtedness
► Aim is NOT to draw against the Standby
► Trade Uses:
 Bid Bond
 Performance Bond
 Overseas Bank Guarantees
 Trade Credit Support
45 |
Shared Client
► In situations where we have a mutual customer relationship, HSBC may be able
to leverage its global presence, either in country or through an affiliate/partner
bank.
► In some cases we may be able to provide financing directly to the exporter’s
customer, either on a recourse, partial recourse, or non-recourse basis. As in all
of our alternatives, your trade finances representative would work directly with
your organization in the coordination of these types of programs.
46 |
Import Core Trade Products
 Strength in Traditional
Trade products
 Leveraging local foreign
expertise to deliver
superior service
 Global reach – our
importer’s suppliers are
often our customers
overseas
47 |
Import
Commercial
Letter of Credit
Documentary
Collections
 Issuance and Document Examination services to the highest standards
 Shipping Guarantees and Airway Release Bills- assist in the prompt release
of merchandise when the actual goods arrive in advance of the Commercial
Documents
 Documents Against Payment
 Documents Against Acceptance
Delivery
Channel
 HSBCnet platform – Provides the ability to issue LCs electronically user
friendly, flexible, provides a view into all trade transactions
 Instant Advice- email notification of LC issuance, amendments, and
payments
Other
Frequently
Requested
Services
 Bankers Acceptances - A self-liquidating, fixed rate method of re-financing
short term trade transactions; typically negotiable instrument
 Global reach- our importer’s suppliers are often our customers overseas;
also gives us the ability to give advice as we collaborate with overseas
affiliates
Export Solutions
 Strength in Traditional
Trade products
 Leveraging local foreign
expertise to deliver
competitive risk
mitigation
 Innovation and client
collaboration; working
together to deliver
alternate and custom
solutions
48 |
Export
Commercial
Letter of Credit
Delivery
Channels




Competitive pricing and risk mitigation structures
Advising, and Document handling services to the highest standards
Confirmation and Discounting services of foreign bank risk
Silent confirmation for sensitive markets and commercial situations
 Electronic LC Advising (Instant @dvice)
 HSBCnet platform – integrated Global Transaction Banking platform
Forfaiting and
Project/Export
Finance
 Worldwide Forfait desk network with appetite for foreign corporate,
government, and bank risk
 Project and Export Finance for long term capital projects
 Short term working capital programs with Exim Bank
EXIM Working
Capital
Guarantee
Program




Other
Frequently
Requested
Services
 Ability to discount bank avalised drafts in markets dominated by collections
 Handling of Transferable Letters of Credit, Deferred Payments and Back-toBack letters of Credit
 Standby Letters of Credit – Bid and Performance Bonds
HSBC has delegated authority for up to $5MM
Product must be at least 50% US content
Generally 1 year or less
Must be fully collateralized via monthly borrowing base
APPENDIX
Key Trade and Supply Chain Clients
Risk Mitigation
*******
*******
Structured Open Account
Solutions
*******
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
Structured Open Account
Solutions
Commercial Letter
of Credit Issuer
Commercial Letter
of Credit Issuer
Commercial Letter
of Credit Issuer
And Export Solutions
*******
Risk Mitigation
Risk Mitigation
And Export Solutions
*******
This Notice Appears as a
Matter of Record Only
And Export Solutions
*******
This Notice Appears as a
Matter of Record Only
Risk Mitigation
*******
*******
*******
*******
Risk Mitigation
And Export Solutions
*******
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
Commercial Letter
of Credit Issuer
Commercial Letter
of Credit Issuer
Commercial Letter
of Credit Issuer
Structured Open Account
Solutions
Risk Mitigation
And Export Solutions
*******
This Notice Appears as a
Matter of Record Only
Risk Mitigation
Risk Mitiation
And Export Solutions
And Export Solutions
And Export Solutions
*******
*******
*******
*******
*******
*******
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
Structured Open Account
Solutions
Commercial Letter
of Credit Issuer
*******
Commercial Letter
of Credit Issuer
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
*******
*******
*******
Commercial Letter
of Credit Issuer
Structured Open Account
Solutions
*******
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
This Notice Appears as a
Matter of Record Only
Commercial Letter
of Credit Issuer
50 |
Structured Open Account
Solutions
Commercial Letter
of Credit Issuer
Commercial Letter
of Credit Issuer
*******
Key Global Awards
Best Online Trade Finance Bank 2008
Best International Trade Bank in China 2008
Best International Trade Bank in Malaysia 2008
Best International Trade Bank in Pakistan 2008
Best Trade Bank in the Middle East and North
Africa 2006 – 2008
Best Structured Trade Bank 2007
Best Trade Documentation Bank 2007
Best Factoring House 2007
Best Online Trade Finance Provider 2007
Best Hardware/ Software Provider Bank in Asia
2007
Best Trade Bank in Asia 2004 – 2006
Best Trade Bank in Central Asia 2007
Best Global Supply Chain Finance Provider 2008
Best Supply Chain Provider in the Middle East 2008
Best Pre-Shipment Financing Solution 2008
Best Trade Finance Provider in the UK 2006-2009
Best Trade Finance Provider in HK 2002-2009
Best Trade Finance Bank in Asia
2002 – 2007
Best Trade Finance Bank in the Middle East 2007
Best Trade Finance Services (Internet Banking) 2006
Best Trade Finance Provider in Saudi Arabia 2009
Global Finance
Best Bank Asia 2007: Supply Chain Finance
Trade Finance
Treasury Management International
Leading Trade Services Bank in Asia Pacific, the
Middle East & North Africa 2007
Leading Bank for Documentary Processing 2007
Global Trade Review
Best Trade Finance Bank in Asia 2003 – 2008
Best Trade Finance Bank in HK 2007-2009
Best Structured Trade Solution 2009
Best Trade Finance Bank in Taiwan 2008
Best Trade Finance Bank in Vietnam 2008-2009
Best Trade Finance Bank in Malaysia 2009
The Asset
Best Trade Finance Bank in Asia 1997 – 2007
Best Trade Finance Bank in Japan 2007, 2009
FinanceAsia
51 |
Deal of the Year 2007
Trade & Forfaiting Review
Deal of the Year 2009
Global Trade Review
Best Global Bank
Best Global Transaction Banking House
Euromoney
Disclaimer
PRODUCTS AND SERVICES ARE OFFERED BY EITHER HSBC BANK USA, N.A., MEMBER FDIC; OR HSBC SECURITIES (USA) INC. A REGISTERED
BROKER DEALER AND A REGISTERED FUTURES COMMISSION MERCHANT. HSBC SECURITIES (USA) INC. IS A MEMBER OF THE NEW YORK STOCK
EXCHANGE, NASD AND SIPC AND REGULATED BY THE SFA FOR THE CONDUCT OF INVESTMENT BUSINESS IN THE UNITED KINGDOM.
HSBC BANK USA, N.A. AND HSBC SECURITIES (USA) INC. ARE MEMBERS OF THE HSBC GROUP. ANY MEMBER OF THE HSBC GROUP MAY FROM
TIME TO TIME UNDERWRITE, MAKE A MARKET OR OTHERWISE BUY OR SELL AS PRINCIPAL SECURITIES OR OTHER INSTRUMENTS MENTIONED
HEREIN, OR TOGETHER WITH THEIR DIRECTORS, OFFICERS AND EMPLOYEES MAY HAVE EITHER A LONG OR SHORT POSITION IN THE SECURITIES,
COMMODITIES CURRENCIES OR OTHER INSTRUMENTS MENTIONED IN THIS REPORT OR FUTURES OR OPTIONS CONTRACTS CONVERTIBLE INTO
SECURITIES OR OTHER INSTRUMENTS MENTIONED IN THIS REPORT, OR MAY PERFORM OR SEEK TO PERFORM INVESTMENT BANKING SERVICES
FOR THOSE COMPANIES MENTIONED HEREIN.
THE INFORMATION IN THIS REPORT IS DERIVED FROM A VARIETY OF SOURCES WE BELIEVE TO BE RELIABLE; HOWEVER, WE CANNOT
GUARANTEE ITS ACCURACY OR COMPLETENESS, NOR SHALL WE BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES
INCLUDING BUT NOT LIMITED TO ERRORS (INCLUDING ERRORS OF TRANSMISSION), INACCURACIES, OMISSIONS, CHANGES IN MARKET FACTORS
OR CONDITIONS, OR ANY OTHER CIRCUMSTANCES BEYOND OUR CONTROL. THE INFORMATION, ANALYSIS AND OPINONS CONTAINED HEREIN
CONSTITUTE OUR PRESENT JUDGEMENT WHICH IS SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.
THIS REPORT IS INTENDED SOLELY FOR THE INFORMATION OF THE SPECIFIED ADDRESSEE, IS FOR PRIVATE CIRCULATION AND NOT INTENDED
FOR USE BY PRIVATE CLIENTS AS DEFINED BY THE SFA.
THIS IS NOT A RECOMMENDATION , OFFER OR SOLICITATION TO PURCHASE OR SELL ANY SECURITY, COMMODITY, CURRENCY OR OTHER
INSTRUMENT. THIS REPORT DOES NOT CONSIDER SPECIFIC OBJECTIVES, CIRCUMSTANCES OR NEEDS OF INDIVIDUAL RECIPIENTS. RECIPIENTS OF
THIS REPORT SHOULD SEEK FINANCIAL ADVICE REGARDING THE APPROPRIATENESS OF INVESTING IN ANY SECURITY, COMMODITY, CURRENCY
OR DERIVATIVE INSTRUMENT OR STRATEGY CONTAINED HEREIN.
SECURITIES, SPOT AND FORWARD FOREIGN EXCHANGE, CURRENCY OPTOINS, COMMODITIES AND CERTAIN OTHER PRODUCTS DISCUSSED HERIN
ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF HSBC BANK USA, N.A., ARE NOT GUARANTEED BY HSBC
BANK USA, N.A.; AND ARE SUBJECT TO INVESTMENT RISKS INCLUDING POSSIBLE LOSS OF PRINCIPAL.
52 |