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Trade finance knowledge 20 August 2010. By Kreingkrai Kerdkrokeo Vice President, International Banking Department. International Trade Buyer/Seller. Sales Contract (Purchase Order/Quotation/Proforma Invoice) Carriage Contract (Exporter/Shipper --- Carrier/Forwarding Agent) - PowerPoint PPT Presentation
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TRADE FINANCE TRADE FINANCE KNOWLEDGEKNOWLEDGE20 AUGUST 201020 AUGUST 2010
By Kreingkrai KerdkrokeoVice President, International Banking Department
International Trade Buyer/Seller
Sales Contract (Purchase
Order/Quotation/Proforma Invoice) Carriage Contract
(Exporter/Shipper --- Carrier/Forwarding Agent)
Banking Operation Visible Trade : Import/Export Invisible Trade : Inward/Outward
3
Exporter, Seller, Exporter, Seller, BeneficiaryBeneficiary
Importer, Importer, Buyer, Buyer,
ApplicantApplicant
Buyer PortBuyer Port Seller PortSeller Port Goods
THAILAN
D
JAPAN
Advising, Confirming,Advising, Confirming,Negotiating BankNegotiating Bank
Issuing, Issuing, Opening.Opening. Paying Paying BankBank
Reimbursing Bank
Opening L/C Documents Money
Req
uest
to
O
pen
L/C
Sale Contract, Purchase Order, Proforma Invoice
Ad
vis
e
L/C
Docu
men
ts
Mon
ey
Docu
men
ts
Mon
ey
3.Au
thor
it
y to
Pay
7. Claim
10. Money
* Open L/C
* T/R, S/G
* Advise L/C * Transfer L/C* Confirm L/C* P/C
* B/P, * B/D
1
2
3
4
5
6
7
89
10
5
* Fund transfer
* FX* FX
Nostro BankNostro Bank
Risks of L/C Issuance/Amendment Full set of original B/L not required by L/C Consignee of B/L not to be SME Bank Full set of original Insurance Policy/Certificate not required by L/C
Risk of International Trade Finance
Risks of Documents Refusal payment under discrepancy(ies)
Risks of Trust Receipt (T/R) Insufficient customer’s cash flow Exchange rate fluctuations
Risk of International Trade Finance
Risks of Packing Credit under L/C L/C not hold by Bank
Risks of Packing Credit under Sales Contract Goods not shipped
Risk of International Trade Finance
Risks of Bill Purchase under L/C Issuing Bank refuse to pay under discrepancy(ies)
Risks of Bill Purchase under Sales Contract Buyer refuse to pay under any reasons
Risk of International Trade Finance
(Export)(Import)(Remittance)(SWIFT)(International Relation)
International Department
ExportPre-shipment – Packing Credit (80% of L/C Amount & 70% of Sales Contract)
Post-shipment – Bill Purchase (100% of L/C Amount & Sales Contract)
Import Opening L/C / Trust Receipt
Inward & Outward Remittance
Trade Finance Banking Facilities
Product
Export
Interest
Packing Credit Short Term Loan not over 180
Days Borrowing Loan not over 80%
of L/C or not over 70% of Trade Volume
/Order Bill Purchased against Sight L/C or
Bill Discounted against Usance L/C Bill Purchased against B/C or Bill
Discounted against Usance B/C
Product
Export
Fee
Export Bills Drawn under L/C Export Bills for Collection Export L/C Advising
Product
Import
Fee
L/C , DL/C Service (Import L/C Issuance)
Shipping Guarantee Import Bills for Collection
Product
Import
Interest
Trust Receipt Short Term Credit not over 180
days
RemittanceRemittance
Service
--Outward Remittance
--Inward Remittance
- ** Thai Kitchen to the world
Nostro Account : Foreign Exchange Account which SME BANK opened with the other banks for operating in foreign Account
Working Procedure
Call VisitBusiness Center
Head OfficeInternational Banking
Team
MortgageSign Contract byCredit Processing
Department
Analyze
Approve
Inform loan approval amount to
International Banking
Department for preparing the
document
International Banking Department
coordinate with customer for
requesting the document for open
L/C, T/R, P/C
Staff of Branch / Head Office
note for Loan Disbursement
International Banking operate as loan disbursement
procedure and save in Approval Loan System
of Department
Set up for Loan Approval Set up for Loan Approval
Loan DisbursementLoan Disbursement
Credit Processing Department operate
in Loan Disbursement
(incase of P/C)
1. Service of International Banking Department How long have to wait if the customer bring the
application form for open L/C ? How many days will receive the money if the
customer bring the export documents to the bank ?
2. Which information is necessary for Credit Analysis ?
3. What is the credit guarantee of International Banking Credit ?
4. Does the bank has the strong point in international trade finance and How ?
Frequent Asking Questions
Mr.Kriengkrai Kerdkoekeo Tel.265-4497 Mobile 0859807816
Mr.Chatri Wetsoranasutee Tel.265-4481Mobile 0865269375
Ms.Pensri Suanarunsawat Tel.265-4496
Ms.Renuka Makthiengtrong Tel.265-4480 Mobile 0819022360
Mr. Nopporn Piyapanuwat Tel.265-4491
Contact
Thank YouThank You
