Page 5: Examples of transactions
‘An excellent way to boost our sales’ is how a company manufacturing and exporting textile machinery for processing cotton and synthetic fibres describes HSBC Trade Services’ Insured Export Finance facility. In this business, competition comes primarily from Germany but also from Swiss, Italian and Japanese companies. This manufacturer has developed new markets in the USA, China and Asia-Pacific. With terms of payment varying, but repayment sometimes being made over periods of up to five years, the Insured Export Finance facility provides funding for credit-insured export sales to the USA. The exporter receives ten per cent in advance and 90 per cent when documents are presented (evidence of shipment), which is usually 5-6 weeks before the customer actually pays.
A Welsh company dealing in specialist camping equipment and clothing has grown from village roots to 1600 outlets in the UK and is now attacking the European market. Being both an importer of goods from the Far East, where it has a large production programme and an exporter of finished goods to selected European markets, the company turned to HSBC Trade Services two years ago and was introduced to the Hexagon system. The company now uses Hexagon to open and manage letters of credit opened in favour of factories in the Far East, and HSBC Trade Services also provided the company with a structured import finance facility.
A major UK domestic retailer required an international partner to assist in further automating its supply chain management. As well as providing an international trade finance facility, HSBC Trade Services introduced an electronic document delivery channel for the retailer and its suppliers. This interface with the supply chain management system enables purchase orders to be delivered electronically to international suppliers. They are automatically acknowledged and the suppliers create their own invoices and packing lists. Documents are then electronically returned to the retailer where the data can update the retailer’s management system.