Receivables Finance - Import Factoring

The Hongkong and Shanghai Banking Corporation Limited was established in 1865 and is a wholly owned subsidiary of HSBC Holdings plc.

With total assets of US$1,861 billion as at 31 December 2006, HSBC is one of the largest banking and financial services organisations in the world, with well-established businesses in Europe, Asia Pacific, the Americas, Middle East and Africa.

Globally, HSBC provides factoring services in Australia (Sydney), China (Shanghai), Hong Kong SAR, India, Malaysia, Taiwan, United Arab Emirates (Dubai) and United Kingdom.

In Singapore, we have been a member of Factors Chain International (FCI) since 1997 and are one of Singapore’s leading financial institutions in Receivables Finance.

We are experienced in most industries* and provide a range of domestic, import and export factoring services including:

• Non-recourse and recourse factoring.
• Credit terms of 120 days.
• Collection-only services.

Commission will be charged as a flat percentage of turnover (not including bank charges) and depending on the seller’s business, a document charge may be exercised.

Commission will be calculated on an individual basis after the estimated turnover, number of invoices and debtors have been considered.

We welcome discussions on reciprocal rates with our correspondents.

Applications can be forwarded to us through EDIFACToring (standard FCI format), by mail or telex. Details to include:

• Seller name and address
• Product
• Estimated turnover
• Payment terms
• Invoice currency
• Number of invoices / credit notes

If actual figures differ greatly from the information given on the seller information form, we reserve the right to re-assess our commission charges.

Instructions concerning the charge-back of balance, discount grace periods and details of the seller’s agent should also be given, if available. Otherwise, such information should be forwarded to us at the earliest possible date.

In order for us to make a credit decision in the shortest time possible, it is important that we receive the following information:

• The appropriate name and address of the debtor.
• If the debtor is a limited company, the appropriate legal name of registration is required.
• If the debtor is a partnership or sole trader then the owner / proprietor’s names are required.
• Business registration number of the debtor.
• Debtor’s primary bank details (name and address of bankers and account number if available).
• Debtor’s telephone or fax number.
• Contact name, if direct contact has been approved.
• If possible, a copy of the debtor’s stationery or business card.

Credit decision will be made and advised to the Export Factor within 14 days. All decisions will be advised to the Export Factor through edifactoring.com.

If we are unable to make a decision within 14 days, it will be communicated by edifactoring.com to the Export Factor.

Debtors will not be contacted directly for information without prior consent of the seller. However, it should be noted that there is no requirement for companies to file financial statements at a central registry in Singapore.

All limits approved prior to the commencement of an agreement are on a preliminary basis only.

A copy of the following assignment clause must be placed / printed on all invoices (original and copies) in order to avoid payments being made directly to the seller.

The debt due under this invoice has been assigned to and is payable only to:

The Hongkong and Shanghai Banking Corporation Limited
Receivables Finance Operations

60 Alexandra Terrace
#03-01 The Comtech
Singapore 118502

If this invoice is incorrect in any respect, HSBC must be notified immediately.

Stocks of the Singapore dollar and currency labels are available upon request.

A copy of our introductory letter must also be sent to all debtors on the seller’s own company letterhead and a copy forwarded for our record. A sample of the introductory letter is enclosed on page 4 for your reference.

Statement of accounts will be sent to debtors on a monthly basis. Four reminder letters will be sent to debtors the first 10 days after due date and the subsequent reminders at 10-day intervals.

We reserve the right to serve notice on the debtor of our intention to initiate legal proceedings for the recovery of the debt. During the dunning cycle† the debtor will also be contacted by telephone as appropriate.

Under usual circumstances, invoices will be considered for legal action 40 days after their due date. However, we reserve the right to commence action at an earlier date if circumstances dictate. For unapproved debts, legal action will only be taken with the Export Factor’s permission.

Documentation to prove the validity of any debt may be required should legal action be necessary. Therefore, please ensure your sellers are in a position to provide copy orders, proof of delivery and confirmation of orders. Failure to provide any such supporting documentation may affect our ability to remit payment under guarantee.

All funds will be remitted to the Export Factor by SWIFT or by Banker’s cheque.

Cleared funds will be transferred on a daily basis and full remittance details will be sent through edifactoring.com (standard FCI format) on the day of transfer. If there is only a small amount to be transferred, this will be held until a larger amount is received to save on bank charges. Alternatively, confirmation will be sought from the Export Factor as to whether or not they wish the funds to be transferred.

Any approved / undisputed amounts will be remitted under guarantee 90 days after due date.

For Import Factor cash transfers to The Hongkong and Shanghai Banking Corporation Limited, a list of our accepted currency accounts is attached. It is important that payments are sent to the currency accounts as specified.

Our account numbers are as follows:
SGD: 141-910729-001
USD: 141-910729-701
EUR: 141-910729-231
JPY: 141-910729-491
GBP: 141-910729-381
AUD: 141-910729-211
HKD: 141-910729-421

We use the FCI standardised reporting system and have implemented EDIFACToring in accordance with FCI requirements.