Dear Professional !!
I need to get past all the spin on the bank sites and get some cold hard facts.
Position - HK company with China Factory ( HK / China JV ) .
Small - Not large like Ford or GM , otherwise a team of 100 lawyers and accountants would answer this !
Customer raises L/C to HK and need Trade Finace on this L/C.
Company HK has to raise on the l/c alone and not on other company asets ( none ) . Something like packing loan but transferable into China to finance the factory in the production of goods and payment of workers.
The option of using the l/c as transfereable has been tried but is not accepted for trade finance on the China side due to non controlability ( ? ) of the transfer / change of docs / need for originator to transfer money to 1st then 2nd beneficary.
We have no wish to have the customer raise direct to the factory. Even though a JV we still wish certain facts to be at arms length from the factory.
At this time have survived on " private finace initiatives " but have no wish to continue in this way.
Options needed , no spin, just cold hard facts with costs . Also which is the best one and who gives the best deals in town. Expected turnover 20077 - USD5.00 mill
On another note anyone doing business on finanance from customer PO , without L/C ? I assume this high risk for traditional banks but we do a lot of business this way.
Regards with hope !
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23-09-2006, 12:39 PM #1
Trade Finance 101 Please
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28-09-2006, 09:26 AM #2
Boris, have to tried the most obvious source -- HSBC?
http://www.commercial.hsbc.com.hk/1/...trade-services
Can the transactions for the China factory be routed through HK?
Just bumping this up so others can share opinions.
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28-09-2006, 04:00 PM #3
Boris - I am an English solicitor. I have some experience in trade finance law, but mainly for london bank. Wld be happy to bounce some ideas about if you like, +44 7970 796149.
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29-09-2006, 02:42 AM #4
Know it all.
I am an HSBC customer and have gone through the site and tried to make head n tails of it. Its all spin. If you ask your trade services officer you dont get much more than the same. Not like my business manager in Uk, plenty of clear advice. In HK it appears that most of the bank is just there to help you fill in the forms.
For Mike.
Thanks for the chance but I really need someone who has in depth of the HK scene. I know all about trade finace and what it is. The problem I have is understanding the exactitudes of the HK system. Its very different to O Joe ( Europe ). Everyone is keen to help you to make THEM money ( its the mantra here ) but not so keen to point you into the most efficient direction for saving yourself the cash instead of giving it away in charges and interest.
I am really disappointed that no proffesionals are answering this post. We are getting loads of business at the new factory in China and I just want to be more informed about what way we can get adequate cash flow without giving it all away.
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29-09-2006, 02:47 AM #5
further for Know it all
About routing through China. Yes we do it already. BOC local to us , stated we should do L/C to get the finance. We did that on a transferable and then they said , although a good lc and verified. They wouldnt finance this type. " its in our book !! " . Regs mean nothing here so we went somewhere else where we had gwanshi. Got it sorted . But not in a way that I want to do long term. hence the need to understand what is efficient in HK.
