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Trade finance knowledge 20 August 2010

Trade finance knowledge 20 August 2010. By Kreingkrai Kerdkrokeo Vice President, International Banking Department. International Trade Buyer/Seller. Sales Contract (Purchase Order/Quotation/Proforma Invoice) Carriage Contract (Exporter/Shipper --- Carrier/Forwarding Agent)

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Trade finance knowledge 20 August 2010

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  1. Trade finance knowledge20 August 2010 By KreingkraiKerdkrokeo Vice President, International Banking Department

  2. International Trade Buyer/Seller • Sales Contract • (Purchase Order/Quotation/Proforma Invoice) • Carriage Contract • (Exporter/Shipper --- Carrier/Forwarding Agent) • Banking Operation • Visible Trade : Import/Export • Invisible Trade : Inward/Outward

  3. International Trade by L/C JAPAN THAILAND Sale Contract, Purchase Order, Proforma Invoice Exporter, Seller, Beneficiary 1 Importer, Buyer, Applicant Buyer Port Goods Seller Port 5 * T/R, S/G * B/P, * B/D * FX * Open L/C * FX Nostro Bank * Advise L/C * Transfer L/C * Confirm L/C * P/C Money Documents Reimbursing Bank Documents Money Request to Open L/C Advise L/C 5 10. Money 9 8 6 7. Claim 3.Authority to Pay 2 4 Opening L/C 3 Advising, Confirming, Negotiating Bank Documents Issuing, Opening. Paying Bank 7 Money 10 * Fund transfer

  4. Risk of International Trade Finance Risks of L/C Issuance/Amendment Full set of original B/L not required by L/C Consignee of B/L not to be SME Bank Full set of original Insurance Policy/Certificate not required by L/C

  5. Risk of International Trade Finance Risks of Documents Refusal payment under discrepancy(ies) Risks of Trust Receipt (T/R) Insufficient customer’s cash flow Exchange rate fluctuations

  6. Risk of International Trade Finance Risks of Packing Credit under L/C L/C not hold by Bank Risks of Packing Credit under Sales Contract Goods not shipped

  7. Risk of International Trade Finance Risks of Bill Purchase under L/C Issuing Bank refuse to pay under discrepancy(ies) Risks of Bill Purchase under Sales Contract Buyer refuse to pay under any reasons

  8. International Department (Export) (Import) (Remittance) (SWIFT) (International Relation)

  9. Trade Finance Banking Facilities Export Pre-shipment – Packing Credit (80% of L/C Amount & 70% of Sales Contract) Post-shipment – Bill Purchase (100% of L/C Amount & Sales Contract) Import Opening L/C / Trust Receipt Inward & Outward Remittance

  10. Product Export Interest • Packing Credit • Short Term Loan not over 180 Days • Borrowing Loan not over 80%of L/C or not over70% of Trade Volume/Order • Bill Purchased against Sight L/C or Bill Discounted against Usance L/C • Bill Purchased against B/C or Bill Discounted against Usance B/C

  11. Product Export Fee • Export Bills Drawn under L/C • Export Bills for Collection • Export L/C Advising

  12. Product Import Fee • L/C , DL/CService (Import L/C Issuance) • Shipping Guarantee • Import Bills for Collection

  13. Product Import Interest • Trust Receipt • Short Term Credit not over 180 days

  14. Remittance Service -Outward Remittance -Inward Remittance ** Thai Kitchen to the world • Nostro Account : Foreign Exchange Account which SME BANK opened with the other banks for operating in foreign Account

  15. Working Procedure Set up for Loan Approval Mortgage Sign Contract by Credit Processing Department Approve Call Visit Business Center Head Office International Banking Team Analyze Inform loan approval amount to International Banking Department for preparing the document Loan Disbursement International Banking operate as loan disbursement procedure and save in Approval Loan System of Department Staff of Branch / Head Office note for Loan Disbursement International Banking Department coordinate with customer for requesting the document for open L/C, T/R, P/C Credit Processing Department operate in Loan Disbursement (incase of P/C)

  16. Frequent Asking Questions Service of International Banking Department How long have to wait if the customer bring the application form for open L/C ? How many days will receive the money if the customer bring the export documents to the bank ? Which information is necessary for Credit Analysis ? What is the credit guarantee of International Banking Credit ? Does the bank has the strong point in international trade finance and How ?

  17. Contact Mr.Kriengkrai Kerdkoekeo Tel.265-4497Mobile 0859807816 (kreingkrai@smebank.co.th) Mr.Chatri Wetsoranasutee Tel.265-4481 Mobile 0865269375 (chatri@smebank.co.th) Ms.Pensri Suanarunsawat Tel.265-4496 Ms.Renuka Makthiengtrong Tel.265-4480 Mobile 0819022360 (renuka@smebank.co.th) Mr. Nopporn Piyapanuwat Tel.265-4491

  18. Thank You

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