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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 indepth knowledge and experience, combined with our technological

innovations, enable us to meet your company+s every need. &hether you are a trader in thedomestic 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. Thisgives 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.

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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 postshipment finance, easing cashflows.

#ackin$ Credit #C!

/acking (redit is a preshipment 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 postshipment

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 notcomply 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.

4xemittance 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

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available in all ma5or currencies such as 0S-2T!%, 6/72T!%, 3%/2T!%,

$02T!%. "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

nonrecourse 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 nonrecourse 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 wouldno 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 asevidence 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.

"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

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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 credit0A 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$ $uarantees0Adocumentthat allows a customerto takepossessionof

shipped goodsbefore the shippingcompanyreceivesthebill of lading, indemnifyingthe shipping company from any lossin case the customer fails topay.Shipping

guarantees are typically arranged bybanks, which reuire acashmarginor other

assuranceofpaymentfrom 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 the4ederal 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 ofthe 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

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