DC Confirmation (Exports)

• Assures payment by HSBC (confirming bank) against compliant documents even if the issuing bank is unable to pay
• Minimises risk exposure when dealing with higher risk countries or institutions
• Outsources your bank and country risks to HSBC so that you can concentrate on growing your business
• Eliminates the contingent liability in your books as payment, once received from the confirming bank, is on without recourse basis
• Gives you flexibility and comfort to open up new markets in developing countries
• Provides intelligence on the financial strength and standing of the issuing bank through the HSBC's worldwide network

Doing business with an unknown bank or a high risk country can present uncertainties. When you receive DC as payment instrument, you may be concerned whether the payment undertaking from that DC issuing bank is reliable, particularly if shipments are going to less familiar markets. If this bank gets into financial difficulties, you may not get paid.

• It is a double protection
  Arrange with your buyer to issue a DC to you, which carries a confirmation request to HSBC. Once the DC is confirmed, it gives you a double protection with commitment from both the issuing bank and the confirming bank to make payment. When documents are presented in accordance with the DC, payment from the confirming bank is final.
• HSBC is able to confirm a wide range of DC issuing banks
  Confirmed DCs are commonly used for business dealings with buyers in developing countries. Depending on individual credit appetite, many banks in Singapore are selective of which banks they will confirm. You will find that HSBC adds its confirmation to one of the widest range of DC issuing banks at competitive rates.