Trade Offering

Export Services

We acknowledge the significance for exporters to receive funds promptly and securing advantageous rates. Through our extensive correspondent banking connections, expertise, competitive exchange rates, dedicated assistance and user-friendly digital resources, we accompany you throughout your export journey. We aim to ensure your financial experience is seamless, pleasurable, and stress-free.

Export Bill Collection / Under LC

Enjoy faster receipts of funds with our extensive correspondent bank network while we handle all the details for you.

Experience expedited fund receipts with our dedicated trade finance infrastructure and extensive network of correspondent banks. At HDFC, we understand the importance of timely transactions in international trade. That’s why we take care of every detail, ensuring a smooth process from dispatching clean and LC-backed bills to handling cheque processing and crediting your account promptly.

Key Benefits

  • Efficient Processing: Our streamlined procedures ensure swift processing for all types of bill collections, including those under LC. With our expertise and advanced systems, you can count on us to optimise the collection process and minimise delays

  • Competitive Advantage: Our tailored solutions empower your business with a competitive edge. Access updated information and insights that matter, including comprehensive credit reports of overseas parties, expert guidance on navigating the intricacies of international trade, compliance requirements and staying abreast of the latest developments in international trade regulations to enhance operational efficiency and document management.

  • Personalized Support: We provide personalised support to meet your specific needs, beyond transactions. Our team of experts is dedicated to understanding your business objectives and offering customised solutions that align with your goals. Whether you require strategic advice, specialised documentation assistance, or ongoing support, we are here to help you succeed in the global marketplace.

At HDFC Bank, we are committed to facilitating your international trade transactions and empowering your business growth. Trust us to be your reliable partner at every step of the way.

LC Advising

Overview

LC Advising is a critical service in international trade that ensures the secure transmission of Letter of Credit (LC) from the issuing bank to the beneficiary. The advising bank, typically located in the beneficiary country, confirms its legitimacy and terms.

Key Benefits

  • Security and Assurance: Receive LC through authenticated SWIFT messages thus, reducing the risk of fraud.

  • Local Expertise: Provides beneficiaries with local support and guidance in understanding and fulfilling the LC requirements.

  • Efficient Communication: Streamlines the process of the LC communication between the issuing bank and the beneficiary, facilitating smooth transactions.

How it works?

  • The issuing bank sends the LC to the advising bank.

  • The advising bank authenticates the LC and forwards it to the beneficiary.

  • The beneficiary reviews the LC terms and proceeds with the transaction based on the confirmed terms.

  • Any amendments to the LC are also communicated through the advising bank, ensuring all parties are updated.

Why choose HDFC Services?

  • Global Reach: Leverage our extensive network to ensure timely and accurate advising of your LCs

  • Expert Support: Our experienced team provides comprehensive assistance in managing and understanding LC terms.

  • Seamless Process: Efficient handling of LC advisement, amendments and communication for smooth trade operations.

Export Pre-shipment Financing

Overview

Export pre-shipment financing provides exporters with working capital to fund the production or procurement of goods before they are shipped. This financing solution helps exporters meet their export commitments, ensuring they have the necessary funds to produce, package, and ship goods to international buyers on time.

Key Benefits

  • Enhanced Cash flow: Access funds before shipment to cover production costs, raw material purchases, and labour expenses.

  • Timely Order fulfilment: Helps exporters complete orders on time without delays due to financial constraints.

  • Increased competitiveness: Enables exporters to take on larger orders and fulfil multiple contracts simultaneously.

  • Flexible Financing: Financing can be customized based on export orders and repayment terms aligned with post-shipment proceeds.

How it works?

  • The exporter secures an export order or Letter of Credit from the buyer.

  • HDFC Bank provides pre-shipment financing to fund the production or procurement of goods.

  • Once the goods are shipped, the loan is typically repaid through post-shipment export proceeds or other payment arrangements.

  • The exporter continues to maintain a healthy cash flow, fulfilling buyer orders smoothly.

Why choose HDFC Services?

  • Tailored Solutions: Flexible financing options based on your specific export needs.

  • Fast Disbursement: Quick access to funds ensures timely production and shipment.

  • Global Trade Expertise: Leverage our deep trade finance experience to streamline your export operations.

Letter of Credit Negotiation / Discounting

Overview

Letter of Credit (LC) Negotiation or Discounting provides exporters with immediate access to funds by discounting the value of LC before its maturity. Once the export documents are presented and accepted under the LC terms, the bank advances the payment to the exporter, ensuring quick access to working capital.

Key Benefits

  • Immediate Cash Flow: Receive payment before LC matures, helping maintain liquidity and meet operational expenses.

  • Competitive Edge: Enables exporters to offer attractive payment terms to buyers while securing funds upfront.

  • Flexible Financing: Offers the flexibility to choose a financing period based on your cash flow needs.

How it works?

  • The exporter submits documents in compliance with LC terms to HDFC Bank.

  • Upon verification, HDFC Bank negotiates or discounts the LC and advances payment to the exporter.

  • The exporter receives funds before the LC’s maturity, which can be used for working capital or other needs

  • The bank collects payment from the issuing bank upon LC maturity

Why choose HDFC Services?

  • Fast Access to Funds: Immediate liquidity to meet your business needs without waiting for LC maturity.

  • Risk Mitigation: Reduces the risk of non-payment while ensuring timely funds.

  • Trusted Expertise: Our experienced trade finance team ensures seamless document handling and quick disbursement.

Export Bill Collection under Documentary Collection

Overview

Export Bill collection under documentary collection allows exporters to access funds before receiving payment from the buyer. By submitting shipping documents through the bank for collection, exporters can finance their bills, ensuring liquidity while waiting for payment from the buyer.

Key Benefits

  • Improved Cash Flow: Provides immediate access to funds, enabling exporters to cover production costs or reinvest in business operations.

  • Reduced Risk: Mitigates the risk of payment delays as the bank facilitates the collection process and advances funds to the exporter

  • Efficient Trade Management: Ensures a smooth flow of goods and payments, especially when dealing with international buyers.

  • Flexible Financing: Offers the flexibility to choose finance either on sight (Immediate payment) basis or on term basis (Deferred payment)

How it works?

  • The exporter submits export documents to HDFC Bank.

  • Upon verification, HDFC Bank forwards the documents to Importer’s bank for payment/acceptance.

  • HDFC Bank advances payment to the exporter.

  • The exporter receives funds before the due date, which can be used for working capital or other needs

  • The bank collects payment from Importer’s bank on maturity

Why choose HDFC Services?

  • Fast Access to Funds: Immediate liquidity to meet your business needs without waiting for export maturity.

  • Trusted Expertise: Our experienced trade finance team ensures seamless document handling and quick disbursement.

Import Services

As an importer, you frequently encounter challenges relating to timely goods receipt and payments. Our extensive correspondent banking network, industry expertise, dedicated support, competitive exchange rates, and user-friendly digital tools provide you with the assurance of a financial partner capable of enhancing your business value.

Issuance of Letter of Credit

Overview

HDFC Bank Singapore provides letters of credit (LC), a reliable and structured secure trade finance solution for businesses engaged in international trade. With our services, you can conduct global transactions with confidence, ensuring smooth cross border trade while mitigating risk for both importers and exporters.

Key Advantages of Letter of Credit (LC)

  • Payment Security: Ensures payment for exporters on presentation of documents complying with the documentary conditions in the LC.

  • Customizable & Credible: Tailored to business needs, enhancing trust between trading partners.

  • Improved Cash Flow: Offers timely payments for exporters and flexible credit terms for importers.

Why choose HDFC Bank Singapore for your Letter of Credit?

  • Global reach with local expertise: HDFC Bank Singapore branch combines deep local market knowledge with an extensive global banking network, making it an ideal partner for international trade.

  • Tailored solutions: Letters of credits are designed to cater to your specific needs, whether you are importing or exporting goods.

  • Efficient processing: With our trade finance specialist, we offer fast processing times, ensuring that your international transactions proceed smoothly and without delays.

Types of letters of credit we offer:

  • Import Letter of Credit:

    • Facilitate secure and timely payment to international suppliers upon receipt of goods.

    • Enhanced trusts and mitigates risk in your global sourcing activities.

  • Standby Letter of Credit (SBLC):

    • Acts as a guarantee for payment in case of non-performance or breach of contract.

    • Commonly used in industries like construction and commerce services and large-scale projects in Singapore.

  • Revolving Letter of Credit

    • Ideal for companies with ongoing transactions with the same trading partners, reducing paperwork and increasing operational efficiency.

Benefits of using HDFC Bank letters of credit:

  • Risk reduction: We mitigate risk for both buyers and sellers by ensuring payment is made upon meeting trade terms.

  • Seamless international trade: With our expertise and robust trade finance solutions, you can navigate the complexities of international trade more easily.

  • Access to global banking network: Leverage your international presence in correspondent relationships to streamline your cross-border transactions.

How to apply: To apply for Letter of Credit through HDFC Bank Singapore, simply reach out to our trade finance team. We will guide you through the documentation requirements and tailor a solution to meet your specific trade needs.

Contact Us: To speak with one of our trade finance experts, contact HDFC Bank Singapore or visit our website. We are here to support your global business operations.

Inward Bill Collection (DA/DP)

Overview

Inward Bill collection involves handling documents sent by exporter’s bank to the importer’s bank. Once the Importer’s bank receives the documents, they will notify the importer to make payment or accept the document in exchange of release of shipment documents.

Key Benefits

  • Simplified payment process: streamlines international trade payments between businesses and their customers.

  • Document control: the bank holds the documents until payment/acceptance, ensuring compliance and reducing risks.

  • Cost effective: A cheaper alternative to letters of credit while still offering protection.

  • Types of inward bill collection:
    Document against payment (DP): the importer must make the payment to receive the shipping documents.
    Documents against acceptance (DA): Importer accepts time draft. Promise to pay at a later date and documents are released before payment.

How it works?

  • Exporter ships the goods and hands over the documents to their bank.

  • The exporter’s bank sends these documents to the importer’s bank.

  • The Importers Bank notifies the importer and either.

  • Releases documents against upon payment.

  • Releases them against acceptance of a draft.

  • Upon receiving the documents, the importer can claim the goods from customs.

Why choose HDFC Services?

  • Global Reach: Access a vast network of correspondent banks for smooth transactions.

  • Trusted Expertise: Experienced teams to ensure compliance with international trade regulations.

  • Efficient Processing: HDFC Bank helps in handling of documents, in line with instructions received from supplier’s bank. In case of open account imports, the bank effects payments as per your convenience. Fast document handling, ensuring timely release of goods.

Import Bills under LC

Overview

Import Bills under LC is a trade finance solution that allows importers to access goods while ensuring payment to exporters. Once the goods are shipped, the exporters bank presents the documents to the importer’s bank under the terms of the LC. The importer then either pays immediately or accepts a time draft for future payment.

Key Benefits

  • Risk Mitigation: Ensure that payment is only made after goods are shipped and the conditions of LC are met.

  • Improved Cash Flow: Enables importers to defer payments while receiving the goods, helping manage cash flow.

  • Document Control: The bank manages and verifies shipping documents, ensuring they are in line with the LC’s requirements before release.

  • Global Trade Facilitation: Safeguards cross-border trade by offering a secure payment mechanism, even in unfamiliar markets.

How it works?

  • The exporter ships goods and submits documents to their bank.

  • The exporter’s bank forwards the documents to the importer’s bank.

  • The importer’s bank notifies the importer and either:

    • Releases the documents against immediate payment.

    • Releases them against acceptance of a time draft (Payment at a later date).

  • The importer uses the documents to clear the goods from customs.

Why choose HDFC Services?

  • Global Reach: Access a vast network of correspondent banks for smooth transactions.

  • Trusted Expertise: Experienced teams to ensure compliance with international trade regulations.

  • Efficient Processing: Fast document handling, ensuring timely release of goods.

Avalisation/Co-acceptance of Import Bills

Overview

Avalisation, or Co-acceptance of import Bills, is a service where the bank guarantees payment on behalf of the importer giving the exporter confidence that payment will be made at maturity.

Key Benefits

  • Enhanced Credibility: The avalisation assures exporters that the importer’s payment obligations will be met, enhancing trust between trading partners.

  • Risk Reduction: Minimises the risk of non-payment for the exporter, as the bank guarantees the payment.

  • Flexible Payment Terms: Importers can negotiate extended payment terms, improving cash flow while providing exporters with security.

  • Global Trade Support: Facilitates international trade by adding an extra layer of security to transactions, especially in new markets.

How it works?

  • The exporter ships goods and submits documents to their bank.

  • The importer’s bank accepts the time draft and avalises it, adding a payment guarantee.

  • The importer receives the goods and has time until the draft’s maturity date to make payment.

  • If the importer fails to pay, the bank will honour the payment obligation.

Why choose HDFC’s Avalisation Services?

  • Financial Security: Guarantees timely payment to exporters, reducing the risk of default.

  • Trade Facilitation: Strengthens relationships by offering reliable payment solutions in global trade.

  • Expert Support: Our trade finance experts ensure seamless handling of all transactions.

Back to Back Letter OF Credit

Overview

A back-to-back Letter of Credit is issued using an existing export L/C opened in customers favour with consistent terms and conditions as security and the source of repayment. 

Key Benefits

  • Facilitate Complex Trade Transactions: Allows intermediaries to conduct complex trade transactions with suppliers and buyers in a secure way.

  • Risk Reduction: Reduces risk for suppliers by offering the security of a second LC, guaranteeing payment.

  • Flexible Trade Operations: Supports intermediaries in managing transactions with multiple parties, ensuring smooth trade flows.

How it works?

  • The ultimate buyer issues a Master LC in favour of the intermediary.

  • Based on this Master LC, intermediary’s bank issues a second LC to the ultimate supplier.

  • supplier ships goods and submits the documents to their bank under the second LC.

  • Once the buyer fulfils the conditions of the first LC, payment is made, and the intermediary uses these funds to make payment to the ultimate suppliers.

Why choose HDFC’s BACK-TO-BACK LC Services?

  • Comprehensive Trade Support: Facilitate seamless transactions between multiple parties.

  • Trusted Expertise: Our team ensures proper structuring and management of both LCs to meet the needs of all parties.

Remittances

Inward Remittance

HDFC Bank Singapore facilitates individuals and businesses to receive funds from abroad. The bank provides secure and efficient solutions to facilitate the receipt of foreign currency into Singapore, supporting cross-border trade and personal remittances.

Key Benefits

  • Fast and Secure Transfers: Receive international payments quickly with full security

  • Favourable Exchange Rates: Benefit from competitive exchange rates for converting foreign currency.

  • Regulatory Compliance: Our services ensures full compliance with local regulations.

How it works?

  • The sender initiates a remittance from abroad via a correspondent bank.

  • Funds are transferred to HDFC Bank’s account and credited to the beneficiary’s account with HDFC Bank Singapore.

  • Beneficiary can access the funds through their HDFC Bank Singapore account.

Why choose HDFC Services?

  • Seamless Process: Quick and efficient handling of remittances with real-time tracking.

  • Wide Network: Global partnerships ensures smooth and secure transfer of funds.

  • Regulatory Expertise: Benefit from our knowledge of local regulations and international standards.

Outward Remittance

HDFC Bank Singapore facilitates individuals and businesses to send funds abroad for personal or business needs. The Bank facilitates these international transfers while ensuring compliance with regulatory requirements.

Key Benefits

  • Efficient Transfers: Send funds internationally with ease and speed.

  • Competitive Forex Rates: Take advantage of our attractive exchange rates for all your outward remittances.

  • Regulatory Compliance: The bank ensures full adherence to local regulations

How it works?

  • The sender provides necessary details, including beneficiary information and purpose of remittance.

  • HDFC Bank processes the transfer and remits the funds to the overseas bank account.

  • The beneficiary receives the funds in the local currency of the destination country.

Why choose HDFC Services?

  • Global Reach: Send money overseas with ease.

  • Secure Transactions: Advanced systems ensures secure and reliable transfers.

  • Comprehensive Support: Guidance on documentation and compliance for all your remittance needs.

Bank Guarantees

HDFC Bank, by virtue of large correspondent banking network, provides bank guarantees and standby letters of credit to cater to your domestic as well as cross-border requirements.

Bank Guarantee / Standby Letter of Credit

Overview

A Bank Guarantee (BG) or Standby Letter of Credit (SBLC) provides financial security to the beneficiary in the event the applicant of the BG fails to meet their contractual obligation. These instruments are widely used in trade, construction, and other industries to ensure payment or performance.

Key Benefits

  • Payment Assurance: Guarantees payment or performance, ensuring the beneficiary is protected against default.

  • Supports Business Expansion: Enables businesses to enter new markets or secure large contracts without the need for upfront payment.

  • Risk Mitigation: Offers a safety net in case the applicant cannot fulfil their obligations under the contract.

How it works?

  • The applicant requests a BG or SBLC from HDFC Bank, specifying the terms and amount.

  • HDFC Bank issues the BG or SBLC on behalf of the applicant in favor of the beneficiary.

  • In the event of non-performance by the applicant, the beneficiary can claim the guaranteed amount from HDFC Bank.

Why choose HDFC Services?

  • Global Network: Leverage our extensive network to issue guarantees and standby LCs across borders.

  • Trusted Security: Our guarantees provide peace of mind for both domestic and international transactions.

  • Expert Guidance: Our team offers advice on structuring BGs and SBLCs to meet your specific needs.

Financing Structures for Sales to India

UPAS LC Financing

Overview

UPAS (Usance Payable at Sight) LC Financing is a trade finance solution where the exporter gets paid at Sight, while the importer benefits from usance terms (deferred payment). This structure enhances trust in international trade by ensuring both parties needs are met.

Key Benefits

  • Immediate Payment for Exporters: Exporters receive payment at sight while the importer pays at a later date.

  • Deferred Payment for Importer: Importers can defer payments, helping to manage cash flow more effectively.

  • Trade Risk Mitigation: Ensures that the exporter is paid on time and the importer has time to fulfil payments

How it works?

  • Import LC is issued by any bank in India.

  • LC will nominate HDFC Bank Singapore branch as reimbursing bank & Supplier’s bank as the nominated bank.

  • Documents flow between parties as per normal process.

  • Upon acceptance of documents, LC opening bank will authorise nominated bank to claim reimbursement from HDFC Bank Singapore branch at sight.

  • LC opening bank will also authorise HDFC Bank Singapore branch to settle the claim.

  • Nominated bank will claim from HDFC Bank Singapore branch.

  • On LC due date, LC opening bank will pay HDFC Bank Singapore branch.

Why choose HDFC Services?

  • Optimised Cash Flow: Flexible terms for importer and immediate liquidity for exporters.

  • Enhanced Trade Security: Ensures timely payment for exporters and deferred payment for importers.

  • Seamless Execution: Benefit from our expertise in structuring UPAS LC transactions for smooth trade flows.

Buyer’s Credit for sales to India

Overview

Buyer’s Credit for sales in India is a financing solution that allows Indian buyers to obtain credit from overseas lenders to finance their domestic purchases. This option helps buyers manage cash flow while ensuring timely payment to suppliers.

Key Benefits

  • Improved Cash Flow: Access credit to pay suppliers on time while managing working capital effectively.

  • Competitive Financing: Benefit from lower interest rates compared to local borrowing options.

  • Flexible Repayment: Choose from flexible repayment options that align with your business’s cash flow.

How it works?

  • Underlying trade transaction between the buyers and seller can be under LC / collection / Direct import

  • HDFC India issues a Standby Letter of Credit (SBLC) in favour of HDFC Bank Singapore

  • HDFC Bank Singapore makes payment to HDFC Bank  India for further credit to the supplier bank account

  • On due date Indian importer repays buyers credit loan to HDFC Bank Singapore

Why choose HDFC Services?

  • Cost Effective Financing: Access international credit to Indian Importers at competitive rates.

  • Streamlined Process: HDFC Bank manages the entire credit arrangement, making the process seamless.

  • Expert Guidance: Our Trade Finance experts ensure compliance with all regulatory requirements.

Get more information on the all products at sg.customerservice@hdfcbank.com

For more information, you can reach us at +65 62026870 or alternatively you can write in to us at sg.customerservice@hdfc.bank.in