Where borders are not barriers to growth

SMBC Group has deep expertise in delivering and executing trade finance deals across the world through its global network. With a specialisation in bespoke financing structures, the bank’s experienced professionals help its customers to meet their liquidity needs, mitigate risk, and achieve their financial goals. SMBC Group is continuously creating new and innovative ways to serve its customers financial and sustainability goals.

With a specialisation in bespoke financing structures, we can provide sophisticated and innovative solutions for a wide variety of liquidity needs and risk mitigation to support the financing needs of corporate customers and financial institutions.

Solutions range from import and export letters of credit, bonding and payment guarantees through to more structured products such as supply chain and receivables finance, various forms of commodity finance and export credit agency finance.

The bank’s investment in digital processes and platforms enables digital delivery of many products and services, with further expansion expected in this fast-moving area.

Receivable discounting

SMBC Group can support customer sales by buying eligible receivables on a non-recourse, semi-recourse, or full recourse basis. This can help customers expand business volumes and offer competitive payment terms to their customers whilst optimising cash flows.

Supply chain finance

We provide facilities to assist our customers in settling approved invoices submitted to them by their eligible suppliers. This can assist customers in securing the integrity of their supply chains, and provide access to financing for smaller suppliers as well as optimising working capital.

Commodity finance

We can support customer activities in the commodity supply chain by providing multipurpose transactional trade finance facilities for a range of commodities and payment risk mitigation products, including letter of credit confirmations and payment guarantees. We can also assist with cash flow management by discounting and buying trade receivables.

Structured commodity finance

We are experienced in providing structured pre-production finance to traders and producers of metals, energy and agricultural commodities. Our products are tailored to meet the specific needs of each customer and include pre-export finance, export prepayments and tolling facilities.

Key Products

Letter of credit confirmation (silent or open)

An independent undertaking provided to sellers for the payment of a letter of credit (L/C) upon compliant presentation of documents in line with the L/C terms and conditions. This further secures the seller against the country, political and foreign exchange risks of the issuing bank.

Letter of credit and documents against acceptance discounting with recourse

Providing working capital funds by financing the seller’s export bills receivables.

Letter of credit and documents against acceptance discounting without recourse or forfaiting

Purchasing of trade receivables against the credit risk of the L/C issuing bank. Such receivables may be evidenced by a promissory note, bill of exchange, deferred payment L/C or a letter of forfaiting.

Account receivables purchase and factoring

Purchasing the trade receivables of a seller arising from open account transactions.

Supplier finance

Discounting of a seller’s receivables with the backing of a payment commitment from the buyer.

Payment guarantee

Undertaking provided to a seller to mitigate a buyer’s non-payment of obligations.

Standby letter of credit and bank guarantee

A written undertaking issued for the account of an applicant to assure a beneficiary that, should conditions of a trade or service contract not be fulfilled, the beneficiary may call upon the guarantee to satisfy any damage or financial loss. It may also be issued for bid, advance payment, performance, retention and warranty bonds.

Two-step bond or counter guarantee

Undertaking issued against a counter-guarantee from an accredited bank. Similarly, issuance of a counter-guarantee in favour of a fronting guarantor bank for the account of a corporate customer.

Letter of credit or BA refinance

Facility provided to a bank to refinance its trade obligations due on the issuance of L/Cs, acceptance of import bills or import loans.

Pre-export finance

Working capital loan extended to an exporter against its export sales contracts with a reputable buyer.

Commodity trade finance

Various trade financing solutions focused on commodity-based customers.

Structured export finance

Providing short- to long-term financing to customers with the backing of accredited countries’ export credit agencies (ECAs), multilateral agencies, development banks and other risk mitigation tools. SMBC Group offers extensive experience in providing advisory and arranging services for structured export finance, through working with ECAs, development banks, multilateral agencies and other risk-mitigation partners. See structured export finance for more information.