Trade Services

Let our expertise work for you

The complexities of international trade can thwart even the most capable business. So having
an experienced bank can help your business sail its way expertly and safely through
unfamiliar waters. Our long history means that we have the experience and the knowledge of
the local business practices, which enabling us to handle your transactions efficiently and
confidently.
Why use trade services?
An exporter or importer often utilizes a bank for the purpose of acuiring a letter of credit to
facilitate a trade transaction.
!owever, differences in language, culture and business practices across the international
borders can hamper the completion of trading opportunities. "n fact, the intricacy of trade can
thwart even the most capable company.
S#$ %anking can assist you in handling your trade transactions with confidence, giving you
a peace of mind and more time to run your business. &ith our widespread network of
overseas banking partners and branches, we can help your company access and take
advantage of opportunities all over the world. 'et us be your banking partner to exploit the
vast marketing opportunities locally and internationally.
Total Trade Solution
Standard (hartered %ank )Thai* has assembled a specialized team to provide a total trade
solution. Our staff+s in,depth knowledge and experience, combined with our technological
innovations, enable us to meet your company+s every need. &hether you are a trader in the
domestic market, importer or exporter in the international market, we offer one of the widest
ranges of trade products and services for every step of your trade transaction.
!ere are some typical trade services reuested by importers and exporters.
Trade Service for "mporters
Import Letter of Credit
A 'etter of (redit is a written undertaking by the bank given on behalf of a buyer )an
importer*, that payment will be made for goods or services supplied by an exporter,
provided the exporter meets all the terms and conditions of the letter of credit. This
gives confidence and peace of mind to the importer and exporter.
Inward Bills for Collection
These are bills of exchange which are sent to the importer+s bank together with the
necessary documents. -ocuments are only released to the importer if the importer
pays or commits to pay at a later date as agreed between the importer and the
exporter.
"nward bills for collection provide a more secure method of payment than an open
trading account. They also enable an importer to obtain financing from a bank, easing
cashflows for the company.
Trust Receipt TR!
Trust .eceipt is a bridging loan that provides a buyer with financing to settle goods
imported on sight. The importer upon signing the Trust .eceipt agrees to take
possession of the imported goods, but holds them in trust for the %ank. The proceeds
from the sale of the goods will be utilized to settle the Trust .eceipt liability.
Trade Service for $xporters
"xport Letter of Credit
This is an undertaking that payments will be made for goods or services supplied by
an exporter, provided the exporter meets all the terms and conditions of the import
letter of credit. $xport letters of credit give you the opportunity to secure pre,
shipment and post,shipment finance, easing cashflows.
#ackin$ Credit #C!
/acking (redit is a pre,shipment financing from the %ank to help a seller to obtain
money for the procurement of raw materials and inventory of goods that will be later
shipped or sold to a buyer. "t can also help the seller to obtain the proceeds before the
maturity of the export bill. The advance may amount to an agreeable percentage of the
value of the letter of credit issued by the acceptable banks or confirmed order. The
proceeds from the export bill would generally be utilized to settle the amount
advanced. (ustomer can choose to obtain /acking (redit either in local or foreign
currency.
%utward Bills for Collection
0se this bill for an advance against export bills which are not under letters of credit.
Two common outward bills are documents upon acceptance )-A* and documents
upon payment )-/*. This gives the exporter the opportunity to secure post,shipment
financing increasing credit limits.
Credit Bills &e$otiated
(redit %ill 1egotiated )(%1* is used by exporters to ease their cash flow. The
exporters obtain an advance from the bank by discounting their export documents
under 'etters of (redit.
%ond23uarantee )%23*
Bond'(uarantee
%ond23uarantee is a written indemnity either conditional or unconditional, issued by
the bank on behalf of a customer or an overseas bank. Should the principal not
comply with his obligations, under the contract leading to a claim, the bank will make
financial recompensation, in accordance with the terms of the %23.
#ost of the commonly used types of %23 are bid2tender bond, performance bond,
advance payment bond, retention bond and custom bond. Once we know your trade
transaction needs, we will tailor solutions specifically for your company.
4x,.emittance 2 4orward
Spot')orward
Spot24orward help importers and exporters to book today transactions in competitive
price. 4orward deals are provided with tenure up to customer+s reuirement. There are
available in all ma5or currencies such as 0S-2T!%, 6/72T!%, 3%/2T!%,
$0.2T!%. "n addition, .eal time 48 commentary is available for free of charge.
.eceivables Service )-omestic and (ross %order*
This helps you to manage your balance sheet better. "t offers a uick and reliable
financing through the sale of invoices or accounts receivable. 0nder this program, we
extend financing on approved receivables for up to 9: per cent of invoice values on
non,recourse basis.
Convert your receiva*les to cash
Standard (hartered %ank will purchase your receivables drawn on pre,
approved buyers sub5ect to an agreed credit and buyer+s limit
#rotect your receiva*les a$ainst non+payment
&e will purchase your receivables on a non,recourse basis, sub5ect to
arrangement. This will relieve you of credit risk on the buyer, and )sub5ect to
the agreement of your auditors* may improve your balance sheet as it would
no longer remain a contingent item
Continuin$ li,uidity
%ecause you are offering us your portfolio of receivables and not 5ust single
invoices, financing will continue as long as there are fresh unpaid invoices in
your portfolio. This way, your uantum of financing grows along with your
business
Collection and payment follow+up
7ou may wish to courier invoices and shipping documents directly to your
buyer, in which case you need only provide us with copies of invoices as
evidence of receivables for purchase. !owever, if you are not familiar with
collection procedures, you may still submit original invoices to Standard
(hartered %ank for collection and we will dispatch the documents and follow
up on the payment.
Collateral re,uirements
1o physical collateral is reuired. 4inancing is against receivables due to you
as evidenced by copies of invoices addressed to your buyer.
)eatures
-i$h limits
Standard (hartered;s "mport Services provide you with generous limits of up to .s.
<= crore>
"xtensive network
%uild your business by leveraging our extensive international network that spans over
=: countries
.ttractive interest rates
&e offer attractive interest rates> through our import trade services
Workin$ relationship
&e provide you with the services of a dedicated relationship manager to help you get
the most out us
/etails
Our total trade solution offered against primary security of stock and book debts, assists you
through the complexity of international trade by leveraging on our extensive international
network.
Letter of credit0 A letter from a bank guaranteeing that a buyer+s payment to a seller
will be received on time and for the correct amount. "n the event that the buyer is
unable to make payment on the purchase, the bank will be reuired to cover the full or
remaining amount of the purchase.
Shippin$ $uarantees0 A document that allows a customer to take possession of
shipped goods before the shipping company receives the bill of lading, indemnifying
the shipping company from any loss in case the customer fails to pay. Shipping
guarantees are typically arranged by banks, which reuire a cash margin or other
assurance of payment from the customer.
Import financin$0
Custom *onds and $uarantees0 The bond is a guarantee to (/% to guarantee
payment on any duty, fees and penalties levied by the (ustoms Service. "n the case
that an importer does not honor their obligation to (ustoms, a demand is made for
payment to the bond company, then the bond company pursues the principal on the
bond. &ith this statutory reuirement on all imports, it eliminates the need for the
4ederal 3overnment to ever collect money. The money is paid by the Surety that
issued the bond, and (ustoms never has to enter the issues of bad debt collection.
Import collections0 "mport collections are arranged through (ommerzbank in a
similar way to import letters of credit. The key difference, however, is that we do not
issue a promise to pay on collection provided that the documents submitted by the
supplier are all in order. The supplier, therefore, has to trust that you will keep your
promise.
!owever, before you pay the purchase price or accept an exchange, you may inspect
the documents to ensure that your supplier genuinely has adhered to all the terms of
the collection. "f so, you pay the invoice in the agreed manner and receive the goods
in return. "f not, you are not obliged to accept the goods or pay for them.
/irect and .dvance remittances0
Buyers credit L%10
#erformance and financial Bank $uarantees0