Documentary credits

Documentary credit is an obligation of the bank acting by order of a buyer to pay for goods or services delivered by the contractor by the agreed time against complying documents and with observance of all conditions of the letter of credit.

Whether your company is a buyer or seller, using documentary credit as method of settlement may be the optimal solution both for international payments and internal Russian payments. HSBC Group's presence in many countries of the world allows us to offer competitive pricing both for buyers and sellers.

Documentary credit is:
  • A flexible financial instrument allowing at the negotiation stage to achieve maximum satisfaction of the parties to a commercial contract
  • An instrument with a developed international banking practice
  • Transparency of payments - at each stage of the transaction each party is fully aware of the conditions on which payment can be made
Advantages of documentary credits for buyers:
  • An alternative to advance payment
  • For documentary credits with post-financing funding can be received at lower cost as compared to loans
  • Feeling confident that payment will be made only if the seller complies with all the terms of the letter of credit.
Advantages of documentary credits for sellers:
  • An alternative to open account payment (meaning the payment is made after the goods delivery)
  • Ability to receive early payment (in events of discounting deferred payment letters of credit)
  • Ability to reduce country risk and issuing bank risk when the letters of credit are confirmed in the seller's country. HSBC Russia can offer D/C confirmation in HSBC Group offices around the world at a competitive price
  • Feeling confident that payment will be received if the buyer complies with all the terms of the letter of credit

Being one of the leaders of the trade finance market, HSBC strives to offers its clients the most flexible terms of service. By choosing HSBC Russia as your trade finance partner, you gain access to wide opportunities of HSBC Group in any region where it is present.

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Client Advisory and Transactions support

Tatyana Khlebnikova
+7 495 783 88 76

Elena Konyakhina
+7 495 783 88 52