Import Letters of Credit | HSBC Business Direct

Help guarantee payment. Expedite shipment.

• HSBC offers variable terms
• Protects you as a buyer
• Improves cash flow management
• Minimizes financial risks to your business

Risk characteristics

Under a Letter of Credit, you are obligated to pay if the supplier presents compliant trade documents, even if the goods are damaged or do not meet your expectations. You can take additional steps to enhance protection by:

• Verifying the supplier's reputation, financial standing and ability to produce the goods required
• Obtaining samples of goods
• Ensuring your Letter of Credit calls for a certificate of inspection from an independent inspection agency, certifying that goods meet the criteria of a clearly defined standard

Related products

• Shipping Guarantee/Air Waybill Release. Take control of goods without presenting original copies of transport documents when goods arrive before the documents, avoiding additional storage fees or demurrage charges.
• Pre-Set Exchange Rates and Forward Contracts/Options. Protect your business against future currency fluctuations by fixing an exchange rate upfront.
• Import Loans. Allow you to bridge the gap between payment for imported goods and receipt of funds through subsequent sales.
• Bankers Acceptances. Marketable and cost-effective, these time drafts provide an unconditional promise by the accepting bank to pay the face amount of the draft.

Learn more about HSBC's Trade and Supply Chain capabilities.