Page 3: Secure trading
Catering for all of these differences can involve greater risk. Some markets may suffer from political and economic instability. In others, distribution channels may make it difficult to get products onto the shelves.
Trading with companies in North America or Europe usually means trading on ‘open account’ terms so payment is less certain. In other parts of the world, ‘documentary credits’ are a more accepted method and provide greater security of payment.
The importer pays for the goods simply by paying money directly to the exporter after the goods have been received.
An undertaking given by an importer’s bank to pay a sum of money to the exporter provided the exporter meets certain conditions contained in the documentary credit.
HSBC Trade Services
HSBC Trade Services is an important operation within the HSBC Group. Supported by electronic delivery, it provides specialist services and tailored solutions for customers involved in international trade. HSBC Trade Services provides a partnership role designed to help organisations manage the processes for effective trading in an increasingly complex trading world, using global reach and local knowledge. Its position of expertise ranks HSBC as one of the largest trade services organisations in the world within an international network of banks.
Relationship managers are the gateway to HSBC’s services for exporters. They provide access to all of HSBC’s services together with the specialist expertise required to develop trade solutions that match the needs of their clients. HSBC has a long-established local presence in many countries and territories around the world and, with the use of advanced technologies, has a truly global reach. The first stage is often making sure that the right experts in the right countries hear the needs of the business, so that connections can be made. Another service is to provide support with documentary procedures.