Trade finance

Products

• Import Letter of Credit

  Our import letters of credit provide your supplier with our written undertaking to pay them against documents presented (strictly in compliance with the terms and conditions detailed in the letter of credit).

  They can be payable either immediately, or on a term basis (e.g. 90 days after shipment).

  Key benefits

  • Provides your supplier with surety of payment
  • Helps finance your trade cycle
  • Strengthens your negotiation powers
• Export Letter of Credit

  An export letter of credit provides you with protection against payment default by your customer's bank, giving you certainty that you will receive payment (provided you meet the terms of the letter of credit).

  It can be payable immediately or on a term basis (e.g 90 days after shipment).

  Key benefits

  • Provides you with surety of payment
  • Enables you to securely extend credit to your customer
  • Can improve your cashflow without affecting your existing banking facilities
• Import Loan

  Import loans are used to bridge the gap between a payment being made to your supplier and the receipt of proceeds from selling your goods.

  They can be used to fund the payment of import letters of credits and import collections, which can be payable either immediately on presentation of documents or on a terms basis and can also be used to supplement open account payment terms offered by suppliers.

  Key benefits

  • A flexible and cost-effective way to fund your import trade cycle
  • Reduce, or even eliminate, costly supplier credit by enabling you to make earlier payments to your suppliers and thus negotiate better terms
  • Can be denominated in most major currencies, providing you with the opportunity to finance at a lower base cost
• Export Loans

  Export loans are used to bridge the gap between you absorbing the cost of manufacturing or purchasing goods for export, and receiving payment from your overseas buyer.

  They are structured to meet a business’s trading needs: Handelsbanken can advance funds upon presentation of documentation that provides evidence that a particular contractual obligation has been met. 

  Key benefits

  • A  flexible and cost-effective way to fund your export trade cycle
  • Enables you to offer extended credit terms which can be attractive to overseas buyers, safe in the knowledge that your cashflow will not be affected
  • Can be denominated in most major currencies, resulting in the potential of financing at a lower base cost
• Import Collection

  Handelsbanken undertakes to receive and handle the documents required to clear imported goods, and make payment to your suppliers.

  Payable on immediate release of documents or on a term basis (documents against acceptance e.g 90 days after shipment) to assist with cashflow or match your trade cycle.

  Key benefits

  • A simple and secure method of paying your suppliers
  • Cost effective: a lower cost than import letters of credit. Please note, for import collection we do not check any documents
  • No credit facility is required as payment is not guaranteed to the supplier by us, unless a bank ‘Aval’ (bank guarantee) has been requested
• Export Collection

  Provides a more secure method than Open Account, as documents are sent to and held by the overseas bank until your buyer has either paid or agreed to pay at a future date. This allows you to keep control of the shipping documentation until released to the buyer.

  Key benefits

  • Provides a simple, cost-effective method of receiving payment from your buyer with the potential ability to have this guaranteed through the addition of an ‘Aval’ (bank guarantee from the overseas bank).
  • Improved credit control, as Handelsbanken seeks payment on your behalf via the overseas bank.
• Bonds, Guarantees & Standby Letter of Credit

  Overseas companies increasingly insist that their trading partners support their contractual obligations by way of a bank bond or guarantee, i.e. a bank undertaking to pay the beneficiary in the event that the bank’s customer fails to fulfil the terms of its contract.

  To provide you with support and meet this requirement, we offer a full range of foreign bonds and guarantees, including bid/tender, performance, warranty, advance payment guarantees and standby letters of credit.

  A Handelsbanken guarantee will provide your trading partner with evidence of your financial standing and proof of your commitment to fulfil your contractual obligations.

  In addition to our suite of standard guarantee wordings, the department can issue customised guarantee formats.

  A standby letter of credit is an alternative to a bond or guarantee that sits behind an underlying contract, providing an undertaking by a bank to guarantee payment in the event of non-payment or performance by a buyer or seller, as the case may be.

  Key benefits

  • A simple, cost-effective instrument providing surety of payment (subject to terms and conditions being met)
  • Can be used to replace or enhance credit risk insurance