Supporting UK SMEs - The Royal Bank of Scotland · • We will convert the foreign currency at the prevailing rate that is refreshed regularly on Bankline, in some instances the foreign

Supporting UK SMEs

Helping Small and Medium Sized Enterprises with their international banking needs

International Proposition

We support UK businesses looking to trade internationally and we offer a full range of solutions across multiple currencies that can help you:

• Make or receive payments

• Fulfil import and export activities

• Gain greater visibility, access and control over the movement of funds

In the following pages we outline solutions that can help address your international banking needs. We also have range of Customer Solution Guides and Product Factsheets available, with more detailed information on the products and services we offer.

Where we are unable to assist you, we have a number of Partner Bank arrangements to support you in countries outside the UK and Ireland.


Our global reach could help your business

Trading overseas is often driven by the desire to reduce costs, increase revenues by gaining access to bigger markets and ultimately increase profitability.

When picking the right market, UK companies are increasingly looking beyond traditional markets to fund new growth. The export of goods to non-EU countries has recently outstripped those to EU countries – that hasn’t happened since the 1970’s.


Choosing the right market

54% of respondents stated that extension of their markets overseas was seen as the single biggest opportunity for their company in 2017 (1)

57% of businesses surveyed by Lombard are investing in their businesses to help support export activity (2)

Chinese growth may be slowing but it’s still growing faster than traditional markets and has recently joined the list of the UK’s Top Ten export markets.

We’re the world’s 10th largest exporter, sending over £436bn of goods and services overseas.

Top 14 UK export locations in

2016 Country of destination

Export value £m

Top 14 export growth locations

in 2016 by % Country of

destination Export value £m %

Growth 2015

USA 47,423 Iceland 560m 90%

Germany 32,790 Morocco 854 37

France 19,438 Ghana 551 36

Netherlands 18,615 Bangladesh 204 26

Republic of

Ireland

17,101 Iran* 141 24

China 13,487 Libya 151 20

Belgium & Lux 11,971 Bulgaria 492 20

Italy 9,965 Ukraine 366 13

Spain 9,978 Vietnam 477 11

Switzerland 9,199 Turkey 4453 10

UAE 6,753 Macedonia 659 9

Hong Kong 6,380 Algeria 412 9

Japan 5,040 New Zealand 690 7

Canada 4,830 Slovenia 245 7

Sources: ITC International Trade Statistics: UK Export Markets *If you are considering doing business with Iran, please see https://www.gov.uk/government/publications/doing-business-with-iran/frequently-asked-questions-on-doing-business-with-iran

The two largest markets for UK exporters are the Eurozone and the US however, slower growth in these regions has encouraged UK businesses to explore new territories. The focus is increasingly on fast – growing markets in Asia, the Middle East, Eastern Europe and Africa.

(1) Institute of Export & International Trade Export Survey 2017 (2) Lombard 750 research (part of RBS Group), Feb 2016

https://www.gov.uk/government/publications/doing-business-with-iran/frequently-asked-questions-on-doing-business-with-iran





















Enable day-to-day operations

Understanding the needs, challenges and future goals of your business means we can design solutions specifically with you in mind. We acknowledge that international solutions can span across multiple needs depending on the type of business and/or type of solution. Having visibility, access and control across all your business needs is key to managing your business efficiently. The contents of this pack are not exhaustive, so if you do have any other needs please let us know so we can help you find the right solution.

Customer Needs

Aligning ourselves to your needs

Cash Flow Management

• International Payments

• International Collections

• Commercial Cards

Liquidity Management

• Currency Accounts

• Partner Banks

Working Capital & Supply Chain

Trade Finance and Service

• Letters of Credit

• Short-term Corporate Trade Loans

• Trade Discounting

• Trade Services

• Trade Finance

Visibility, Access & Control

Online Channels

• Bankline

– Payments & Reporting

– External Account Management

• SWIFT

• MaxTrad™

• FacFlow

Your international business needs

Government Trade Schemes

• UK Export Finance

• Export Finance Guarantee

Security may be required. Product fees may apply.

Foreign Currency Conversion

• As an alternative to opening currency accounts, you can make and receive foreign currency payments from your GBP account at any time. Therefore, there would be no need to manage or carry the cost of a foreign currency account.

• We will convert the foreign currency at the prevailing rate that is refreshed regularly on Bankline, in some instances the foreign exchange element is supplied by NatWest Markets**. This means you do not need to run multiple accounts or book an FX rate in advance

• Available in 38 currencies (see appendix)

Enabling Day-to-Day Operations

Cash Flow Management – International Payments & Collections

Payment Description Credit date 1-2 days All major currencies* All major countries

International Payments Fastest way to make an international payment

Y Y Y

Inward Payment * Receipt of payment from overseas originators or in a foreign currency for the credit of a UK-based account

Straight through processing

Y Y

SEPA Credit Transfer: Y Euro only SEPA countries

SEPA Direct Debit Payments

Enables your account to be debited with euros

Y Euro only EU/EEA

Inter Account Transfer Transfer currency between your accounts

Y Y Y

* Payments and Inter Account Transfers can be made using any of our traded currencies ** Please refer back to your business account terms for clarity


Criteria

• Registered organisation in the UK, Channel Islands, Isle of Man or Gibraltar

• Available to Limited companies as well as other corporate bodies

Working capital

management

Efficient

Control

Management Information

Flexible

Acceptance

• Monthly limits

• Single transaction limits

• Merchant category blocking

• Preferred vendor blocking

• Exception reporting

• Real-time account management

• Automated payment processes

• VAT accounting benefits

• Up to 38 days between purchase and settlement

• One monthly payment

• The choice for most Commercial and Corporate customers

• Widely accepted in the UK and worldwide (over 25 million outlets)

• Hosted card option

• Travel management solution

• Travel and entertaining

• Procurement

• Smart Data OnLine (MasterCard)

• Cards OnLine

• Comprehensive reporting

• Automated reconciliation


Cash Flow Management - Commercial Cards: onecard




Moving, managing and investing funds is important to large corporates to ensure the business achieves the best return on all assets. Royal Bank of Scotland can provide:

• Accounts in 38 currencies domestically

• Partner Bank arrangements in 32 countries outside the UK and Ireland


Partner

Banks Accounts

Partner Banks

• Where you require an account outside the UK and Ireland, we can introduce you to one of our partner banks

• These accounts can be monitored via Bankline

Accounts

• We offer our small and medium enterprise customers accounts in a range of currencies

• Both current and deposit accounts are available

• All these accounts can be accessed via Bankline


Working Capital and Supply Chain

Trade & Working Capital products are the lifeblood of businesses. Our products help customers to trade internationally, to mitigate risk, finance the working capital cycle, and to manage liquidity effectively. From traditional Trade services to structured financing techniques, we have one of the broadest product sets in the market.


Guarantees

Trade

Finance

Discounting Collections

Letters of

Credit

Guarantees

• Provides security for either the financial or performance obligations of a customer and is payable on demand

• Can either be issued directly on Royal Bank of Scotland paper to the Beneficiary or through a correspondent bank if the Beneficiary’s country if that is what they require

Importing & Exporting

Trade Financing

• Short term loan tailored to a specific contract(s). An alterative to overdrafts when funding trading activity

• Covers the funding gap (usually less than 6 months) between supplier payment and invoice

• Selection of required credit period, removes the need to build trade funding requirements into overdraft facility

Invoice Discounting

• We buy your eligible invoices (debts) and send you up to 90% of the money within 24 hours from submitting your invoices

• You’ll have access to our 24/7 online tool FacFlow to manage your account, invoices and payments quickly and easily

Collections

• A universally recognised method for settling overseas trade debt through the international banking system

• They enable the importer/exporter to maintain control of the goods pending payment or acknowledgement of the debt

Letters of Credit

• Letters of Credit guarantee payments to the importer/exporter

• Payment s will be made provided the conditions specified in the documentation are complied with

• You can stipulate the exact documentation that must be provided in order to be paid

Working Capital and Supply Chain

Government Trade Schemes

UK Export Finance

The UK Government, through its export credit agency UK Export Finance (UKEF), has launched short-term programmes targeted at UK exporters of all sizes. Where the bank requires greater security to provide an export related loan or guarantee, which the customer cannot provide, UKEF will consider supporting the application by sharing the risk with the bank and providing its own guarantee in favour of the bank. Bond Support Scheme

• Supports the issuance of contract bonds, guarantees and Standby letters of credit (SBLCs) for eligible export contracts Working Capital Scheme

• Supports the financing of working capital via ‘Export Loans’, both pre and post shipment, for eligible export contracts. ECA Finance Buyer Credit

• For larger value goods, if a foreign importer requires help with funding in order to buy from a UK Exporter, then UKEF will support the bank’s loan to the importer, again via a guarantee in the bank’s favour.

Export Finance Guarantee

• The EFG scheme is designed to facilitate lending to SMEs, including start-ups, that would otherwise be unable to borrow due to a lack of security

• Under the scheme, the borrower pay s the Government a quarterly premium in addition to the normal loan repayments. In return, the Government guarantees a portion of the loan in the event of default

• The borrower remains responsible for repayment of 100% of the EFG debt at all times. The benefit of EFG is not to reduce the borrower’s liability in any way; rather, the benefit of the guarantee is that it enables the borrower to access finance that, otherwise, they would be unable to. EFG is managed by the British Business Bank (BBB), the UK’s economic development bank

Interested in finding out more about Government Schemes?

If you are interested in finding out more about the range of Government Schemes, please contact your relationship manager

Whether you’re ready to start trading right away, or are still at the planning stage, we could help you expand your business internationally. To get started, why not take one or two of the following steps? • Do some further reading at

business.rbs.co.uk/business/international-trade • Or if you want to talk to us about any aspect of

international trade please call the Royal Bank SolutionsLine: 0800 210 0235 or email [email protected]

Monday to Friday, 9am-5.30pm (excluding public holidays). Calls may be recorded. Set your sights beyond the UK – and fully realise your potential as an international business.

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.


MaxTrad

FacFlow

Bankline

FacFlow

• FacFlow is RBS Invoice Finance’s client interface system, allowing you access to your invoice finance facilities and 24/7 regardless of location.

• Manage your account online with FacFlow and gain greater control over your finances.

• No more paper based processes.

MaxTrad

• MaxTrad is Royal Bank of Scotland’s online platform for importers and exporters around the world.

• Our customers, partners and other cross-border trade professionals can now easily access our online products and services through the MaxTrad suite of products.

• It simplifies, expands and globally rationalises access to our trade capabilities through a common platform.

Bankline

• Real-time balance and transaction reporting of all Royal Bank of Scotland GBP and Foreign Currency accounts domiciled in the UK, including payment advices for incoming and outgoing International Payments to help you manage your financial position at any time of the day.

• View balance and transaction details/reporting of all your 3rd Party Bank accounts, domiciled both overseas and in the UK via SWIFT MT940* messages.

• To give you greater ease-of-access, Bankline provides intuitive payment screens which prompt you to provide mandatory information required by the country you are sending the payment to.

• The Bankline help desk is there to support you with all your specific payment queries.

Visibility, Access & Control

Visibility of international operations

Our digital channels allow you to manage multiple accounts, see all your transactions in real time and make secure international and domestic payments online via Bankline. Customers using Royal Bank of Scotland Trade and Invoice Finance Services can access these via MaxTrad and FacFlow respectively.

Importing & Exporting


*This is an end of previous working day statement

International Solutions

Royal Bank of Scotland helps thousands of businesses with their international banking requirements


• Our Liquidity solutions support our customers day to day liquidity management, automating cash concentration to simplify management of cash, reduce interest cost and make best use of corporate funds.

• Within Payables & Receivables we offer a range of payment solutions, to support International and domestic payments all of which enable our customers to make or receive payments in a range of currencies

• We process more than 2.8bn payments a year for businesses of all sizes, enabling them to manage their Cashflow and streamline procurement by making payments reliably, quickly and flexibly

• We provide Trade & Working Capital products to support your business, These products help customers who trade internationally, to mitigate risk and finance the working capital cycle.

Managing

Your Cash

Guidance

and

Support

Funding

Options

Trade

Services Documentary

Collections

Letters of

credit

Bonds and

guarantees

Digital

services

Foreign

Exchange

International

International

Payments

Supply

Chain

Finance

Invoice

Discounting

Trade

Finance

Foreign Currency

Whether you are importing or exporting, we understand that being able to pay and receive money in foreign currency is convenient for both you and your suppliers or customers. We offer two ways of managing your foreign currency payments:

• If you are sending or receiving substantial foreign currency payments, our current accounts are available in 35 foreign currencies to help you transact simply and safely, as shown in the table to the right

• If you do not hold an account in a certain currency, we will convert payments, where possible, into one of our 38 traded currencies so it can be credited to you or your beneficiary’s account.

Appendix

Account & Foreign Currency Conversion Foreign Currency Conversion Only

Available Foreign Currencies

Australian Dollar

Bahrain Dinar

Bulgarian Lev

Canadian Dollar

Croatia Kuna Chinese Renminbi

Czech Koruna

Danish Krone

Euro Hong Kong Dollar

Hungarian Forint

Indian Rupee Israeli Shekel Japanese Yen

Kenyan Shilling

Kuwaiti Dinar Mauritius Rupee

Mexican Peso Moroccan Dirham

New Zealand Dollar

Norwegian Krone

Omani Riyal Polish Zloty Qatari Riyal Saudi Riyals Singapore Dollars

South African Rand

Sterling

Swedish Krona

Swiss Franc Thai Baht Tunisian Dinar Turkish Lira UAE Dirham US Dollar

Barbados Dollar

Bermudian Dollar

Jordanian Dinar


Security may be required. Product fees may apply. Over 18s only.

ANY PROPERTY OR ASSET USED AS SECURITY MAY BE REPOSSESSED OR FORFEITED IF YOU DO NOT KEEP UP ON REPAYMENTS ON ANY DEBT SECURED ON IT

This document has been prepared by The Royal Bank of Scotland plc or an affiliated entity (“RBS”) exclusively for internal consideration by the recipient (the “Recipient” or “you”) for information purposes only. This document is incomplete without reference to, and should be viewed solely in conjunction with, any oral briefing provided by RBS. RBS and its affiliates, connected companies, employees or clients may have an interest in financial instruments of the type described in this document and/or in related financial instruments. Such interests may include dealing in, trading, holding or acting as market-maker in such instruments and may include providing banking, credit and other financial services to any company or issuer of securities or financial instruments referred to herein. RBS is not and shall not be obliged to update or correct any information contained in this document. This document is provided for discussion purposes only and its content should not be treated as advice of any kind. This document does not constitute an offer or invitation to enter into any engagement or transaction or an offer or invitation for the sale, purchase, exchange or transfer of any securities or a recommendation to enter into any transaction, and is not intended to form the basis of any investment decision. This material does not take into account the particular investment objectives, financial conditions, or needs of individual clients. RBS will not act and has not acted as your legal, tax, regulatory, accounting or investment adviser; nor does RBS owe any fiduciary duties to you in connection with this, and/or any related transaction and no reliance may be placed on RBS for investment advice or recommendations of any sort. Neither this document nor our analyses are, nor purport to be, appraisals or valuations of the assets, securities or business(es) of the Recipient or any transaction counterparty. RBS makes no representation, warranty, undertaking or assurance of any kind (express or implied) with respect to the adequacy, accuracy, completeness or reasonableness of this document, and disclaims all liability for any use you, your affiliates, connected companies, employees, or your advisers make of it. Any views expressed in this document (including statements or forecasts) constitute the judgment of RBS as of the date given and are subject to change without notice. RBS does not undertake to update this document or determine the accuracy or reasonableness of information or assumptions contained herein. RBS accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this material or reliance on the information contained herein. However, this shall not restrict, exclude or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed. The information in this document is confidential and proprietary to RBS and is intended for use only by you and should not be reproduced, distributed or disclosed (in whole or in part) to any other person without our prior written consent.

The Royal Bank of Scotland plc. Registered in Scotland No. SC083026. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. The Royal Bank of Scotland plc is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

National Westminster Bank Plc. Registered in England & Wales No. 929027. Registered Office: 250 Bishopsgate, London EC2M 4AA. National Westminster Bank Plc is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The Royal Bank of Scotland plc and National Westminster Bank Plc are authorised to act as agent for each other.

RBS Invoice Finance Limited. Registered in England & Wales No. 662221. Registered Office: 250 Bishopsgate, London, EC2M 4AA

Disclaimer

Documents

Supporting UK SMEs - The Royal Bank of Scotland · • We will convert the foreign currency at the prevailing rate that is refreshed regularly on Bankline, in some instances the foreign