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Documentary Credit Advising

Introduction

After signing the sales contract, you just request your business partners to send the L/C to Shinhan Bank Vietnam (SWIFT code: SHBKVNVX) via the issuing banks for advising. We commit to take action within the soonest time with the most favorable fees.

Benefits

Our professional staffs in Trade department shall check the authenticity of the Documentary Credits (DCs) issued to you within the shortest time.

Professional consultancy shall be provided to minimize your cost and risk.

You have an access to a strong financial support with favorable interest rate.

The most competitive fees are offered.

Other advices on business expanding and trading internationally are provided if requested.

How To Apply

  • It is recommended that you should get Shinhan Bank Vietnam’s consultancy on terms of payment and the issuing bank before signing the contract.
  • You must request your business partners (L/C applicant) to choose Shinhan Bank Vietnam as the advising bank.

Documentary Credit Transferring

Introduction

Transferred documentary Credits (DCs) are used when you are not the ultimate seller such as trader, middleman and buying agent. As the first beneficiary, you may request Shinhan Bank Vietnam to transfer all or a part of the L/C value. We shall make the L/C available to the second beneficiary promptly and efficiently.

Benefits

This service is available for multiple second beneficiaries transferring

No credit line is required to implement DC transferring

No physical involve in goods

The details/information of the buyers and ultimate sellers is kept confidentially then you can get your commission income without worrying

Conditions for an L/C to be transferred

  • L/C is transferrable
  • The L/C regulates that Shinhan Bank Vietnam is the transferring bank or the nominating bank.

Required documents

  • L/C transfer request
  • Original L/C together with relevant L/C amendments (if any)

Documentary Collections

Introduction

Shinhan Bank Vietnam, on the behalf of you, shall send your collection request together with the documents to your business partner’s bank for collection. We then follow up and inform to you when the acceptance is performed or credit to your account the collection amount as soon as the payment is made.

  • D/P (Documents against Payment): the Collecting bank does not release the shipping documents to the importer until the payment has already been made.
  • D/A (Documents against Acceptance): the Collecting bank does not release the shipping documents to the importer until the Usance bill has been accepted.

Benefits

The correspondent banking network worldwide allows Shinhan Bank Vietnam to send documents for collections easily

You can withdraw your money quickly with the reasonable fee

Simple and cost effective payment method in international trading

Documents and payment collection are carried out by the banks, on your behalf

It’s easier and cheaper for buyers to receive Documentary Collections than to issue DCs

Required documents

  • Application for collection document
  • Original full set of shipping documents

L/C Negotiation

Introduction

If you wish to negotiate documents under L/C, we are here to serve you with high negotiation rate, low cost, fast and simple procedure..

TypeL/C Negotiation
IntroductionShinhan Bank Vietnam provides you with the L/C negotiation with recourse service which means that we will make payment in advance for all or a part of claimed amount and have the right to use the payment amount received from issuing/confirming bank to compensate the negotiated amount. In case issuing/confirming bank fails to make payment for the L/C on due date, you must bear the responsibility to refund the negotiated amount to SHBVN.
Benefits
  • You can receive immediate payment on presentation of shipping documents under a Documentary Credit transactions
  • Your business capitals are assured, which allows you to reinvest sales proceeds immediately
  • You can offer more payment options to customers without a negative impact on your cash flow
  • You are offered with the flexible fee and charges, favorable trade finance and competitive interest rate
  • Quick and simple procedure is provided
  • Our experienced staffs check your shipping documents and correct errors to ensure the compliance before submitting to the L/C issuing bank, which will reduce the risk of dispute on documents as well as non-payment.
Required documents
  • Application for negotiation
  • Original L/C and amendment (if available)
  • Full set of documents as L/C required.

Export Factoring (EF)

Introduction

Export Factoring (EF) is a form of open account financing, in which the Bank purchase (up to 100%) the approved account receivables of the Exporter in return for the Exporter’s assignment to the Bank of all rights and interests related to its short-term A/Rs indebted by the Importer.

Benefits

Increase the working capitals to expand your business and trading market

Increase the competitiveness by providing your partner the more favorable payment method

Improves cash flow

Competitive interest rates

Easy to apply for

Required documents

  • Assignment of Account Receivables
  • Application for purchasing A/R cum debt acknowledgement and capital use plan
  • Sales contract, Invoices and supporting documents (e.g. Details of Customs Declaration, Insurance…)

Export L/C Finance

Introduction

We finance to enable you to have working capital for implementation of Export L/C issued in your favor advised through our bank.

  • Loan Limit: Maximum 60% of Export L/C’s value, within your working capital requirement
  • Period:  Not exceeding expiry date of the Export L/C

Benefits

Your working capital is ensured to fulfill your orders

You have fund to cover all pre-shipment costs, manufacturing costs such as raw materials and employee wages

You have access to an extended, flexible financial period

Cash flow is ensured while goods are being packed and waiting for shipment

Expand your business by offering more competitive terms to trading partners

Required documents

  • Application for Loan with Repayment sources and plan
  • Export L/C which is advised by and negotiated with Shinhan Bank Vietnam

Forfaiting without recourse against documents under L/C

Product information

- Shinhan Bank Vietnam executes forfaiting without recourse for documents under shipper usance L/C upon receipt of acceptance undertaking from issuing/confirming bank.
- L/C must be shipper usance L/C, and nominate Shinhan Bank Vietnam as deferred paying/negotiating/ accepting bank.
- Requirements(*) of issuing/ confirming bank, L/C terms & conditions, and Customer must be fulfilled to execute forfaiting without recourse.
(*) For further assistance, please visit nearest Branches

Benefits

Preferential interest rate.

Avoid exchange rate risk as well as non-payment risk of issuing/confirming bank at maturity date.

Balance of this product does not included in total credit exposure to the customer.

Eliminate the following of receivables under L/C on Customer’s side after forfaiting without recourse.

FAQs

1. Do we need to have collaterals to negotiate documentary credit (L/C)?

The Bank does not require collaterals to process L/C negotiation. Please contact our nearest branch for consultation.

2. What is the difference between the L/C negotiating and forfaiting without recourse?

With negotiating, the Customer has to repay the negotiated amount if the issuing/ confirming bank does not pay L/C. With forfaiting without recourse, the Customer does not need to repay the forfaiting when the issuing/ confirming bank does not pay (except for special cases).

3. For usance L/C payable at sight, when can we receive the payment

For usance L/C payable at sight (UPAS L/C), the time when Customer receives the payment can be referred to the following cases:

L/C terms

& conditions

Documents

status

Complied documents

Discrepant documents

T/T reimbursement allowed

3 banking days following the day when the Bank completes the handling of documents

3 banking days following the day when the Bank receives the authorization from issuing bank (usually, it takes approximate 11* banking days following the day when the Bank completes the handling of documents)

T/T reimbursement not allowed

Approximate 5* banking days following the day when the Bank completes the handling of documents

Approximate 5* banking days following the day when the Bank receives the authorization from issuing bank (usually, it takes approximate 11* banking days following the day when the Bank completes the handling of documents)

(*) These durations are estimated on the assumption that:

(i) it takes approximate 2 banking days to deliver documents to issuing bank (this can be changed subject to the geographical location of issuing bank or other factors determined by courier service provider)

(ii) the waiver of acceptance on discrepant documents is carried out on fifth banking day from the day of presentation at issuing bank.

Hence, Customer should prepare a complied presentation to receive the payment in the shortest time. To be advanced by negotiation, Customer can refer here (Home>Corporate>Export Service> Export L/C Negotiation)

Note: The above durations are for your reference based on normal L/C. According to L/C terms and conditions, such time can be shorter or longer.     

4. We haven’t had any credit line yet, can we apply for transferring L/C?

No credit line is required for transferring L/C. If the Customer is the First Beneficiary (the Beneficiary of the L/C which is transferrable), the Customer can transfer L/C to one or more Second Beneficiaries.

5. Which risk may we face to regarding to collection payment method??

The selection of appropriated payment method shall mitigate the risk for Seller (Exporter). In documentary collection, Customer should pay attention to the following:

+ For delivery of documents against payment (D/P), collecting bank shall release the collection documents upon payment of full collected amount from the Buyer (Importer)

+ For delivery of documents against acceptance (D/A), collecting bank shall release the collection documents upon acceptance to pay on instructed maturity date from the Buyer (Importer). On maturity date, the bank only remits the collected amount if the Buyer carries out the payment.

In conclusion, for documentary collection, the bank participates in transaction as the Collection Service Provider without payment obligation. Customer should only apply this payment method to the transactions with traditional buyer with good payment history, prestige.