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 acquiring a letter of credit to facilitate a trade transaction.
However, differences in language, culture and business practices across the international borders can hamper the completion of trading opportunities. In fact, the intricacy of trade can thwart even the most capable company.
SME Banking can assist you in handling your trade transactions with confidence, giving you a peace of mind and more time to run your business. With our widespread network of overseas banking partners and branches, we can help your company access and take advantage of opportunities all over the world. Let us be your banking partner to exploit the vast marketing opportunities locally and internationally.
Total Trade Solution
Standard Chartered Bank (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. Whether 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.
Here are some typical trade services requested by importers and exporters.
- Trade Service for Importers
Import Letter of Credit
A Letter of Credit 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. Documents 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.
Inward 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 Receipt is a bridging loan that provides a buyer with financing to settle goods imported on sight. The importer upon signing the Trust Receipt agrees to take possession of the imported goods, but holds them in trust for the Bank. The proceeds from the sale of the goods will be utilized to settle the Trust Receipt liability.
- Trade Service for Exporters
Export 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. Export letters of credit give you the opportunity to secure pre-shipment and post-shipment finance, easing cashflows.
Packing Credit (PC)
Packing Credit is a pre-shipment financing from the Bank 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. It 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. Customer can choose to obtain Packing Credit either in local or foreign currency.
Outward Bills for Collection
Use this bill for an advance against export bills which are not under letters of credit. Two common outward bills are documents upon acceptance (DA) and documents upon payment (DP). This gives the exporter the opportunity to secure post-shipment financing increasing credit limits.
Credit Bills Negotiated
Credit Bill Negotiated (CBN) is used by exporters to ease their cash flow. The exporters obtain an advance from the bank by discounting their export documents under Letters of Credit.
- Bond/Guarantee (B/G)
Bond/Guarantee 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 B/G.
Most of the commonly used types of B/G are bid/tender 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.
- Fx-Remittance / Forward
Spot/Forward help importers and exporters to book today transactions in competitive price. Forward deals are provided with tenure up to customer's requirement. There are available in all major currencies such as USD/THB, JPY/THB, GBP/THB, EUR/THB. In addition, Real time FX commentary is available for free of charge.
- Receivables Service (Domestic and Cross Border)
This helps you to manage your balance sheet better. It offers a quick and reliable financing through the sale of invoices or accounts receivable. Under this program, we extend financing on approved receivables for up to 90 per cent of invoice values on non-recourse basis.
- Convert your receivables to cash
Standard Chartered Bank will purchase your receivables drawn on pre-approved buyers subject to an agreed credit and buyer's limit
- Protect your receivables against non-payment
We will purchase your receivables on a non-recourse basis, subject to arrangement. This will relieve you of credit risk on the buyer, and (subject to the agreement of your auditors) may improve your balance sheet as it would no longer remain a contingent item
- Continuing liquidity
Because you are offering us your portfolio of receivables and not just single invoices, financing will continue as long as there are fresh unpaid invoices in your portfolio. This way, your quantum of financing grows along with your business
- Collection and payment follow-up
You 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. However, if you are not familiar with collection procedures, you may still submit original invoices to Standard Chartered Bank for collection and we will dispatch the documents and follow up on the payment.
- Collateral requirements
No physical collateral is required. Financing is against receivables due to you as evidenced by copies of invoices addressed to your buyer.
- Convert your receivables to cash
Simply call 1595, press 1, then press 5 for more information. Let our trade service expertise help you reach a wider network of customers and take your business further.