Guarantees

Conduct business with confidence, even where you lack established relationships, through the use of guarantees and standby letters of credit. An HSBC guarantee could enable you to negotiate favourable terms with buyers and suppliers by protecting them from non-performance under a contract while addressing your financing needs. HSBC offers tailored solutions including performance, advance payment, tender, warranty, financial guarantees and standby letters of credit as well as others upon request.

Standard Trade Terms – Please note:



The Standard Trade Terms that govern the Trade and Guarantee solutions we make available to our customers have recently been updated for clarity:

- Solutions previously known as “Packing Credits” and “Manufacturing Advances” are now referred to as “Trade Finance Loans”
- The clause regarding how HSBC calculates payments based on referenced benchmark rates has moved from the country conditions to the main terms at clause 16.11.
- Minor changes have been made to terminology to ensure it reflects current practice and/or is consistent throughout.

You do not need to take any action in respect of these changes which take effect from 1st October 2020. Any existing applications are unaffected by this update and will be processed in the normal way.

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Our guarantees solutions

Financial guarantees

Use our lease, customs and other financial guarantees as a substitute for cash deposits with your counterparties, freeing your working capital and potentially securing favourable contract terms.

Non-financial guarantees

Open up new tender opportunities with HSBC-issued tender bonds, negotiate better contract terms via our performance and warranty guarantees and secure up-front payments via our advance payment guarantees.

Standby letters of credit

In markets where your suppliers and buyers are less comfortable with guarantees, HSBC can support your business via both financial and non-financial standby letters of credit.

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