HSBC introduced a way to help American customers pay import rights.
HSBC Tradepay for import duties is designed to simplify import payments while helping companies optimize the working fund, the bank said in a Wednesday, May 7) press release.
“Many companies are currently facing Change working fund needs And increased the initial commitments, “said the press release.” By adjusting the payments of import duties directly and without friction via HSBC Tradepay, companies can simultaneously access the credit and make payments, which leads to more effective settlement times and better visibility on cash flows. »»
The press release adds that the solution guarantees that import payments are made directly by HSBC, or via pre-aggressed credit conditions with direct ACH brokers or credits.
“Customer working capital needs are evolving – and we respond quickly with solutions that offer them the most value,” said Vivek RamachandranResponsible for global HSBC trade solutions. “By adjusting the import duties directly and without friction via HSBC Tradepay, our American customers have more visibility and control over their working capital when they need it most.”
Launched in 2023, HSBC Tradepay carried out $ 2.3 billion in commercial funding available worldwide, added the press release.
As Pymnts noted in a report last month, commercial financing is a critical force reshape international tradeBeyond factors such as changing prices and supply chains, the World Trade Organization estimating up to 90% of trade is based on trade financing.
However, trade funding has been slowed down by the complexities of national regulations per country (in the case of international trade), monitoring of payments and manual processes. A World Bank report reveals that commercial credit is crucial for small businesses.
“It facilitates the commercial development and the diversification of sales of exporters (credit insurers’ credit opinions can be a major intelligence tool),” said the report, adding: “It strengthens the balance sheet.”
However, many small businesses, especially in the United States, see funding as a challenge. THE US International Trade Commission noted that 32% of small businesses in the manufacturing space and 46% of small companies in the service industry consider the on -site commercial financing processes as “heavy”. And the requests of half financial companies are refused.
“The rise of Integrated financing – and specifically tokenization, which is supported by blockchain technology – helps make trade in trade more effective by improving and accelerating transfer, say, credit letters and short -term financing, “wrote Pymnts.
“Make the documentation of physical trade that allows financing (such as lading invoices or the terms of funding itself) in digital representations on the blockchain allows an instant verification of the transaction and the terms.”
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