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Import Documentary Credit

Introduction

Documentary credit is a payment method in which the issuing bank, as per applicant’s (the Importer) request, undertakes to pay the prescribed amount for the beneficiary (the exporter) or accept the draft issued by the beneficiary as long as the shipping documents are in conformity with the L/C terms and conditions.

L/C issuance

SHBVN, as per customer’s (the Importer) request, issues the Documentary credit to undertake to pay for the beneficiary (the Exporter) immediately or within the prescribed time limit as long as the presented documents are in conformity with all terms and conditions mentioned in L/C.

There are 2 kinds of L/C

  • At sight L/C: Customer receives shipping document and makes payment at sight.
  • Usance L/C: Customer receives shipping document after acceptance to payment. SHBVN makes payment and debit customer's account on maturity day.
  • Customer can request for Letter of Credit (L/C) issuance, amendment via Internet Banking
BenefitsRequired documents

This is the secured payment method for both Importer and Exporter.

  • Ensure a supplier has met your terms and conditions before you pay them
  • Working capitals are ensured, cash flow is improved
  • Documentary Credits issued by SHBVN are acceptable by all correspondent banks worldwide
  • Fast and easy procedure: L/C is issued within 8 working hours
  • Accessible and strong financial support with favorable interest rate
  • You are provided with professional consultancy to reduce your cost and risk
  • Application for L/C Opening
  • Sales contract
  • Import License or Quota (if any)
  • Legal document for opening new account (first transaction with the Bank)

L/C amendment

SHBVN makes amendment of L/C as per customer’s request (the Importer)

Benefits
  • The amendment of L/C is carried out quickly and conveniently
  • SHBVN staff shall check all the changed terms and conditions, and then make the appropriate consult in order to ensure your benefits

L/C settlement

SHBVN undertakes to make payment of L/C value upon receipt of shipping documents conforming to the L/C terms and conditions or upon your acceptance of payment on the discrepant shipping document.

Benefits
  • Reduce the risk in international payment.
  • The payment is made within the shortest time, at the reasonable fee.

Documentary Collections

Introduction

Documentary collection is the payment method in which the exporters assign the banks, on their behalf, to collect the money based on the enclosed shipping documents.

SHBVN receives checks and notifies the arrival of the shipping documents along with the related conditions from foreign banks, and then makes payment as per instruction of the foreign banks.

Benefits

A cost-effective and secure way to trade internationally

Enables you to receive goods before payment

Eliminates the need for credit facilities

A simpler alternative to Documentary Credits

Gives you access to goods without delay

The payment is made within the shortest time at the most reasonable fees

How it works?

Upon receipt of the documents sent for collection from the foreign bank, SHBVN shall inform to you of the arrival of the shipping documents within a day. The documents shall be released to you upon your payment or acceptance of payment.

  • D/P (Document against Payment): You need to make payment in order to receive the shipping documents
  • D/A (Document against Acceptance): You need to promise to pay in writing or make acceptance on payment of draft in order to receive the shipping documents

Shipping Guarantee

Introduction

When the goods arrive earlier than documents, we are here to make sure you can receive your goods immediately by issuing a Letter of Shipping Guarantee or make endorsement on your Bill of Lading.

Benefits

You can receive goods before the arrival of the shipping documents

You can avoid unnecessary delays and miss business opportunities

The payment can be deferred until your supplier's documents have been presented

No need to pay storage or stock fees

You are guaranteed by one of the most prestige banks

Easy and simple procedure to apply for this service

Required documents

  • The application for Shipping Guarantee/ Bill endorsement.
  • Commercial invoice
  • For the Endorsement on Bill of lading service: the original shipping documents need to be presented
  • For the Shipping Guarantee service: the copy of shipping documents need to be presented.

Import Trust Receipt Loan

Introduction

We finance the cost for your imported goods; collect loan repayment from sale of goods.

Loan limit

  • Revolving loan: up to ½ of total import amount during the last 12 months or ½ of total import amount expected in the next 12 months.
  • Non-revolving loan: up to real amount of import.

Period

The initial Period of each Trust Receipt Loan in which the borrower sells the goods and collect money should not exceed maximum 6 months under prearranged interest rate.

Interest rate

We offer you the most competitive rate in the market, based on your company’s credit ratings and collateral.

Benefits

Increase your liquidity on payment

Avoid missing business opportunities due to inadequate cash flow

Enhance your business reputation due to the timely payment

Your negotiating position with suppliers is strengthened as you’re able to accept quick payment terms