Hsbc international share trading account


Improve working capital by unlocking funds caught in the supply chain, and manage incoming and outgoing cash flows more effectively organisation wide. Access our long and short-term loans designed to meet your specific funding requirements. Gain more control over exports, improve cashflow and manage risks associated with international trade more effectively.

Conduct business with confidence, even where you lack established relationships. Upon approval, access working capital to bridge the gap between settlement with suppliers and payment from buyers.

Inject capital into your supply chain, expand into new markets and improve your existing space and systems. Use open account solutions to trade directly with organisations that have a good financial status and also recognise yours. Streamline domestic and foreign payments and collections while also making the best use of cash balances. You can also manage expense effectively by consolidating companywide spending.

Optimise your working capital and make transactions in local and foreign currencies. Improve the way you manage working capital by streamlining and enhancing visibility of your receivables.

Increase the efficiency of your operations by managing cash on a portfolio basis across more than 50 markets worldwide. Consolidate balances for faster, easier access to cash and leverage idle balances to increase liquidity and support your growth strategy.

Manage counterparty risk and do business around the world confidently while managing potential fluctuations in cash flow. At a basic level, trading internationally is not that dissimilar to trading domestically, except that when dealing with businesses based in overseas markets, receiving and making payments can be a more complex process. In international trade, the payment method used has a significant effect on the financing required and the level of risk assumed.

Open account payment is similar to offering credit to a domestic customer. Typically, the credit term eg 30 days starts once the goods are despatched and invoiced, in line with the terms of trade. Many businesses enter into international trade with a small transaction, shipping goods on open account, sending an invoice and getting paid in 30 days.

With this option, the business bears the risk of offering a small amount of credit, while waiting for payment. As more orders come in and a business relationship grows, opportunities increase, but so do the risks. Other trading instruments, such as letters of credit, import bills and trade credit insurance, offer greater risk mitigation while the relationship evolves and trust develops. A documentary collection, where a bill of exchange is drawn up, allows the exporter to keep control of the goods and raise additional finance.

Documentary collections are typically used by exporters selling to importers with whom they have an established relationship. There are a number of nuances associated with documentary collections. One variant is that an overseas bank, acting on behalf of the exporter's bank, will only release the documents necessary for the importer to take possession of the goods once the importer formally accepts the terms of the bill.

However, the exporter still carries the risk that the importer will not settle the bill when it comes due. On the other hand the costs associated with a documentary collection are lower than with a letter of credit see below. However, not all documentary collections include presentation of a bill of exchange for acceptance by the buyer.

Some documentary collections are payable at sight, so there is no bill and low but not no risk of the buyer getting the goods before it has paid for them. Others documentary collections require acceptance or avalisation of the bill by the buyer's bank, so the seller takes credit risk on the buyer's bank, not the buyer. Letters of credit or documentary credits are the most secure method of payment other than payment in advance.

Letters of Credit are typically used for exports to new customers. They offer reassurance to exporters that they will be paid subject to them presenting the right documentation within the appropriate timeframe and to importers that they will actually receive the goods they ordered.

However, in its simplest form a LC does not protect an exporter against risks such as the default of the issuing bank or country risk eg where the importer's government changes the law so that the settlement of LCs becomes impossible. Exporters may therefore find it worthwhile to discuss the various possible additional options relating to LCs such as confirmation with their banks in order to select the solution best suited to their needs.

Full or part pre-payment is typically used for low value sales to individuals or new customers. Although it is the least favourable option from the buyer's perspective, start-up businesses often use advance payment via credit card.

Many websites use an online payment processor such as PayPal, Google Checkout or WorldPay to provide a measure of comfort to both buyer and seller. It is important to bear in mind that the degree of protection and the dispute process can vary significantly among payment processors.

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Investments Liquidity, liability and investments. Managing risk Exports Guarantees Imports Open account. Tools and resources Back. Country and language selector Primary navigation Main Content. Channel Islands and Isle of Man. Working capital Improve working capital by unlocking funds caught in the supply chain, and manage incoming and outgoing cash flows more effectively organisation wide.

Credit and lending Access our long and short-term loans designed to meet your specific funding requirements. Exports Gain more control over exports, improve cashflow and manage risks associated with international trade more effectively.

Guarantees Conduct business with confidence, even where you lack established relationships. Imports Upon approval, access working capital to bridge the gap between settlement with suppliers and payment from buyers. Working capital Articles China firm cut from a different cloth.

Growth Inject capital into your supply chain, expand into new markets and improve your existing space and systems. Open account Use open account solutions to trade directly with organisations that have a good financial status and also recognise yours. Growth Articles Targeting global growth China firm cut from a different cloth Quorn Foods Orchestrating global growth Three steps to taking on major brands.

Payments Streamline domestic and foreign payments and collections while also making the best use of cash balances. Clearing and foreign currency payments Optimise your working capital and make transactions in local and foreign currencies.

Global payables Make paper-based and electronic domestic and international payments. Global receivables Improve the way you manage working capital by streamlining and enhancing visibility of your receivables. Liquidity, liability and investments Increase the efficiency of your operations by managing cash on a portfolio basis across more than 50 markets worldwide.

Investments Consolidate balances for faster, easier access to cash and leverage idle balances to increase liquidity and support your growth strategy. Managing risk Manage counterparty risk and do business around the world confidently while managing potential fluctuations in cash flow.

Payment options In international trade, the payment method used has a significant effect on the financing required and the level of risk assumed. International payment options include: The risk ladder Open account payment is similar to offering credit to a domestic customer. Documentary collections A documentary collection, where a bill of exchange is drawn up, allows the exporter to keep control of the goods and raise additional finance.

Letters of credit Letters of credit or documentary credits are the most secure method of payment other than payment in advance. Pre-payment Full or part pre-payment is typically used for low value sales to individuals or new customers. Conclusion Striking a balance between exporters' and importers' risk appetites is an integral part of agreeing the payment type used for international trade transactions. For new participants, understanding which may be the most appropriate payment type for a particular transaction can be challenging.

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