Trade Solutions

You are on:Letters of Credit tab

As an exporter or importer, you may have concerns about conducting business and negotiating payment terms with unfamiliar foreign suppliers.

RBC can help your business manage these concerns by limiting your financil risk and helping to improve your cash flow.
RBC's trade experts can provide you with the advice and expertise necessary to use letters of credit to make your international purchasing process more efficient.

By using a letter of credit as an importer you can:

• Conserve your company's cash flow by eliminating the need to make advance payments or deposits
• Strengthen relationships by demonstrating your company's creditworthiness to suppliers
• Support your suppliers' access to bank credit, since in many countries, letters of credit are pledged by exporters as security against working capital loans

By using a letter of credit as an exporter you can:

• Ensure that you are paid - even if the buyer fails to pay, the bank that issued the export letter of credit is obliged to pay for your goods or services if your documents comply to the letter of credit
• Provide greater security of payment if confirmed by RBC - this means that even if the buyer and the issuing bank refuse to pay, RBC will pay your company if your documents comply to the letter of credit

You are on:Stand-by Letter of Credit tab

If you're selling mainly or solely to one foreign buyer, you face a "concentration" risk, should your one buyer become insolvent for any reason.
A stand-by letter of credit, issued in your favour by the buyer's bank, would offer you increased security.

A standby letter of credit guarantees a predetermined amount of money; if your buyer defaults on their credit terms, you can be paid for the goods you've already shipped, up to the amount guaranteed by the standby letter of credit.

Benefits:

• They allow for more transparent international transactions
• Letters can be issued in any major currency
• It can be used as a sign of good faith in business transactions

You are on:Custom bonds tab

A customs bond guarantees the payment of import taxes and duties on goods shipped by suppliers. It also assures compliance with all regulations and laws governing the entry of merchandise from overseas.

Suitable for:
To enable a company to import goods from overseas for commercial purposes in excess of a stated amount

Benefit:
Goods can be cleared from Port before payment of duty is made as payment is assured with the bond

You are on:Guarantees tab

RBC offers a Variety of Guarantee Solutions
Bid, Performance and Advance Payment Guarantees, Bid Bonds or Tender Guarantees - To ensure that suppliers submit serious offers, tenders often call for up-front cash deposits or irrevocable guarantees. With an RBC bid guarantee, you can establish your credibility without tying up your cash.

Performance Bonds or Guarantees - Successful bidders often require a performance guarantee for a percentage of the contract amount. RBC enables you to meet your contract requirements and assures your client of your ability to perform.

Advance Payment Guarantees - If you require an advance payment from your client, an RBC guarantee assures the client that their advance will be repaid by RBC if you fail to meet your contractual obligations.

You are on: Documentary Collection tab

When involved in trading goods and services internationally you may have concerns about conducting business and negotiating payment terms with unfamiliar foreign suppliers or buyers.

As an importer you may have concerns about conducting business and negotiating payment terms with unfamiliar foreign suppliers. You need to ensure the goods have been shipped and the supplier has met the terms of the contract. Through Import Documentary Collections, RBC acts as an intermediary in the purchase process, providing you with an opportunity to review key documents before paying your supplier.

As an exporter, it is important to consider the credit risk of your foreign buyer. But it's not always possible to receive cash in advance for your goods. Through Export Documentary Collections, RBC and the importer's bank act as intermediaries, and payment for international transactions are processed through both financial institutions.

Call your nearest branch to get further details on how RBC will work with your business to reduce your risk and provide you with peace of mind.

The benefits you can gain from the use of this safe and efficient service include:
As an importer you are sure that the export has taken place before paying or committing for payment.
As an exporter it can ensure that the documents representing the ownership of the goods, will only be given to the importer once payment is received or guaranteed.
Overall it is an efficient vehicle for dealing with documents, keeping them safe and managing the payments.

You are on: Financing Instruments tab

You can use a variety of financing facilities to fund business expansion to enter foreign markets or borrow funds short term to pay for goods upfront.

• Overdraft facility
• Invoice and inventory financing
• Pre-shipment and post-shipment financing tools
• Bills discounting
• Business credit cards

For more information about how our International Trade Solutions can benefit you business, call your branch for more details.