HSBC | Trade Finance and Receivables Finance
HSBC is housed under HSBC Holdings plc and is a British multinational financial services company with its headquarters based in London. They have over 6,500 offices world-wide and 60 million customers. On an asset basis, they sit as the fifth largest bank.
HSBC offers many funding types, along with more standard business finance solutions such as factoring and invoice discounting. There are working capital solutions, which could assist in providing a more efficient business and trade finance products that assist with international trade and growth into new markets. Supplier finance solutions can assist with partnerships with main suppliers and sales finance management can assist in expanding the distributor and sales network, whilst reducing non-payment risk as working capital finance is provided.
HSBC also offers risk management products to mitigate the risk of potential problems when entering new markets. HSBC can assist when working with new trade partners and also with currency and price volatility. There are also other commodity and structured trade finance solutions for cross border and more complex trades such as documentary collections, prepayment and borrowing base finance facilities.
A Tale of Trade Financing – HSBC NOW
HSBC Trade Finance and Receivables Finance – Benefits
- Regulated by the Financial Conduct Authority
- Headquartered in London
- One of the largest banks in the world
- Business banking
- Consumer banking
- Private banking
- Investment banking
- Consumer banking
- Mortgage loans
- Wealth management
- Credit cards
HSBC is one of the largest banks in the world and thus there is no upper limit on the size of funding line that can be offered. There are instances where in larger facilities; HSBC will act as part of a syndicate to lend.
HSBC provides finance to borrowers of various sizes and will fund up to around 90% of an invoice in as short a time as the next working day. HSBC also offers a business the ability to control their own sales ledger and provide a confidential invoice discounting service. Invoices act as security, instead of personal or business assets and credit protection can be arranged to provide a guard against bad debts.
HSBC can assist in managing the sales ledger and credit control of a business. HSBC have over 45 years of experience in collecting commercial debt and invoices act as security, instead of assets owned by those in the business. Credit protection can also act as a risk mitigation mechanism against bad debts and late payments.
Charges are lower than many smaller financiers, due to the low rate that HSBC borrow at in the money markets. However, the rate they lend at will depend on the type of business.
Popular Types of Trade Finance
Public Limited Company and have a group structure