Trade Finance and Supply Chain Financing Solutions
Import and Export Services
Following its entry into the World Trade Organisation, China has become inextricably linked with the global economy. Companies vying to tap China's vast resources and expanding market can benefit from Standard Chartered's full range of import and export services. We help facilitate China trade by providing added security, easing financial needs and helping settle payments on time.
We offer a comprehensive suite of International Trade Finance Services in China, including:
- Letters of Credit: Issuance, advising, confirmation, discounting and negotiation
- Document Processing and Payment
- Export/Import Bills for Collection
- Bonds and Guarantees
- Discounting of Letters of Credit/Bills
Managing Open Account Receivables
Increasingly, domestic and international trade are shifting to open account trade, which potentially increases risk for businesses in China. Standard Chartered provides clients with solutions to manage their open account trade risk through our Receivables Services, which include these features:
Once the bank approves a limit for a buyer, you may request the bank to purchase receivables drawn on that buyer. Cash may then be obtained against those receivables on the basis that the bank has approved such receivables.
Receivables can be purchased on a non-recourse basis. This means that if a buyer defaults as it has gone into liquidation, the bank will not come back to you for payment.
As an international bank, we collect wherever you want to sell. The more you sell, the more we finance with our Receivables Services. This way, your financing grows along with your business. Credit limits on buyers can be freed and sales turnover consequently increased.
A team of experts can handle your sales ledgers, which reduces your time and effort, delivering considerable savings. We match payments to invoices and generate regular reports to help you better plan your sales.
No Physical Collateral
We finance against receivables and usually no physical assets are pledged to enjoy our Receivables Services.
Innovative Domestic Supply Chain Solutions
An increasing number of domestic companies are investing in manufacturing and sales activities in China. This has resulted in a tremendous demand for RMB to meet working capital needs. Standard Chartered's innovative domestic draft discounting solutions can very cost-effectively help finance receivables or payables. Drafts can be discounted on either a with or without recourse basis, providing you with discount funding and, in the case of non-recourse draft discounting, more efficient cash flow and balance sheet management.
Bank-Accepted Drafts (BAD) Discounting
BADs are a common instrument used by companies in China to secure credit terms from their suppliers. A local bank guarantees the payment risk.
Commercial-Accepted Drafts (CAD) Discounting
CADs are increasingly used by large MNCs or corporations in place of issuance of BADs to their suppliers. You can arrange for your suppliers to discount these CADs with Standard Chartered on a without recourse basis.
Buyer and Supplier Financing
Standard Chartered's dedicated supply chain experts tailor financing arrangements supporting the entire supply chain flow between client and business partners through a Buyer and a Supplier Finance Program.
The Buyer Finance Program offers an alternative financing solution to provide steady and assured funds at attractive rates to distributors.
The Supplier Finance Program is a financing program through which Standard Chartered offers packaged finance facilities to your key suppliers.
These programs help lower operational and administrative costs because the bank helps with payments and collections from business partners. Partner loyalty will increase as partners receive financing because of their relationship with you. They enjoy an assured liquidity, which means they can increase their turnover, resulting in more sales for you. These credit lines are usually given without the need for physical collateral.