Export Payment Options
4
The benefits of exporting
•
The opportunity – currently, only about 20 per cent of UK
SMEs export.
•
The domestic market is declining.
•
Businesses are generally becoming more international.
•
Access to growing markets which do not exist domestically.
•
Exporting improves the potential for long-term survival and
prosperity.
•
44 per cent of firms say exporting significantly improved their
profile or credibility.
•
Exporters are consistently more profitable than domestic businesses.
6
Unlocking the potential – our response
A straightforward approach to understanding
your international trade needs.
Secure cash flow
Getting paid and
managing suppliers
Accelerate cash
flow
Funding gaps and the
timing of cash flow
Get what you expect
Receiving the cash you
expected in the UK
Supporting your international trading needs
Specialist working relationships
•
Robust credit control
•
Debtor protection
• Cash flow for growth
• Multi-currency sales ledgers
• Trade finance
• Debtor Finance
• Protection for your Foreign
Exchange (FX) exposure
• Convenient currency account for
managing cash flow
• International payments facilities
online
• Secure deposits at attractive rates
Secure cash flow
Getting paid and
managing
suppliers
Accelerate cash flow
Funding gaps and the
timing of cash flow
Get what you expect
Receiving the cash you
expected in the UK
8
What’s included in the price?
International Commercial Terms – or – INCOTERMS
Drawn up by - International Chamber of Commerce - ICC – and recognised worldwide
Defines responsibility of Buyer and Seller:
Who Pays the freight
Who pays insurance / where responsibility for cargo passes
Who is responsible of any Import / Export Duties
Different terms can apply – some are only used for Maritime transport
See Lloyds Bank website for an International Business Guide – which
includes a section on Incoterms
EXW , FCA, CPT, CIP, DAT, DAP, DDP
FAS, FOB, CFR, CIF
Methods of Payment - Risk League Table
Low
High
High
Low
Open account
Collections
Letters of Credit
Payments in Advance
Buyer
Risk
Methods Of Payment
1.
Open Account
– you invoice – they pay
2.
Collections
– you ship and send invoice and trade
documents to your Bank. They send to Buyers bank. Trade
documents released against payment OR acceptance.
3.
Letter of Credit
– A bank guarantee of payment issued
by buyers bank. Conditional on presentation of
compliant
documents, within validity period.
Methods of Payment
Making sure you get paid
Letter of Credit
Bank and Country Risk - Confirmation
Debtor Insurance (OECD countries)
UKEF EXIP policy (more difficult countries)
Methods Of Payment
1. Trading in Europe ?
SEPA – DD
Single European Payment Area – direct debit
Collect Euro payments due from Bank accounts in
any European country.
2. Trading in USA ? – Beware additional costs
Check collection and Negotiation
Consider a Lock Box
SUPPORTING INTERNATIONAL TRADE – EFFICIENT BANK
SOLUTIONS
14
Our products and services are designed to make international trade as smooth as possible.
Informatio
n
Our online solutions
provide information and
fingertip control:
Lloyds Online
Trade Services – view,
monitor and manage
your trade activity.
Arena – our
comprehensive
e-solution combining
foreign exchange and
money markets trading
with economic insight.
TravelLink – order
currency online for
secure delivery to
any UK based office.
100%
of transactions are
processed in the UK.
Security
To help you trade more
securely internationally,
our services include:
Urgent and non-urgent
payment mechanisms.
Documentary credits
or collections.
Bonds and Guarantee
services.
Single European
Payment Area (SEPA)
Direct Debits.
Efficiency
International accounts:
Euro accounts for
businesses trading
in Euros.
Foreign currency
accounts for
businesses making
transactions
in foreign currencies.
Currency loans for
trading internationally.
OUR INTERNATIONAL PRODUCT CAPABILITIES – OVERVIEW
A simple and cost effective way to enable payments between key
network banks.
Key capabilities to keep your international trade running smoothly.
Documentary
Collections
Letters
of Credit
Bonds &
Guarantees
Foreign Exchange
(FX) Services
To support you to deal confidently with your suppliers or your buyers,
secure in the knowledge that payment will be made if the transaction
is carried out according to the terms, and is crucially supported by
a bank guarantee of payment.
To support your ability to perform under a contract or meet payment
obligations. They may also be used to underpin any bid to win new
business.
A good way to help manage exchange rate risks and can be
tailored
to your specific needs.
To help you to improve your credit management and free up cash
flow
to support business growth.
A comprehensive range of finance solutions to help fund your
Invoice
Financing
Trade
To support your trade needs
WORKING
CAPITAL
RISK
Stage 2.
Tailor financial solutions to meet your
needs
Through building the timeline, we can
provide bespoke trade solutions for your
needs in both
risk management and working capital.
Stage 2
Stage 1
16
TAILORED TRADE SOLUTIONS – EXAMPLE
Putting your needs first, our specialist teams will work with partner networks and use expert trade
knowledge to deliver the right banking solutions.
-30
0
30
45
100
Tendering
Contract Signed
Goods Shipped
Supplier Paid
Goods Arrive
Invoice Sent
Invoice Paid
Letters of Credit
Trade Finance
Invoice
Financing
Letters of Credit
Bonds & Guarantees
Commercial
events and
timelines
Improve
Working
Capital
Mitigate
Risk
Client needs
Tailored solutions
Stage 1.
Initial assessment to understand your
needs
By conducting an initial timeline assessment,
we get a full understanding of the critical
commercial and geographic events in your
trade cycle.
60
70
Documentary
Collections
Documentary Collections
Illustrative purposes only
Foreign Exchange (FX)
Services
Any Questions?
Happy to have further discussions regarding
Growing your Exports
Lloyds Bank is proud to have a startegic partnership with
UKTI to help Britain Prosper, Globally
We also work closely with UKEF using the Bond Support
Scheme and Working Capital Scheme to enhance our ability
to fund exporting activity.
18
Disclaimer
This presentation is for information purposes only. It is intended as a summary only and whilst it contains some information about the potential risks and benefits of various products and services it should not of itself form the basis for any investment decision.
Whilst Lloyds Bank plc has exercised reasonable care in preparing this presentation and any views or information expressed or presented are based on sources it believes to be accurate and reliable, no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of the information contained herein.
If you receive information from us which is inconsistent with other information which you have received from us, you should refer this to your Lloyds Bank relationship team for clarification.
Please contact us if you’d like this information in an alternative format such as Braille, large print or audio.
If you have a hearing or speech impairment you can use Text Relay (previously Typetalk) or if you would prefer to use a Textphone, please feel free to call us on 0845 601 6909 (lines open 7am-8pm Monday to Friday and 9am-2pm Saturdays).
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Our service promise.
If you experience a problem, we will always try to resolve it as quickly as possible. Please bring it to the attention of any member of staff. Our complaints procedures are published at lloydsbank.com/business/contactus
Disclaimer
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Telephone: 020 7626 1500. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Licensed under the Consumer Credit Act 1974 under licence number 0004685. We subscribe to the Lending Code; copies of the Code can be obtained from
www.lendingstandardsboard.org.uk Lloyds Bank plc is covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service. (Please note that due to the schemes’ eligibility criteria not all Lloyds Bank Commercial customers will be covered by these schemes).
Factoring and Invoice Discounting, Asset Based Lending, Debtor Protection are provided by Lloyds Bank Commercial Finance.
Lloyds Bank Commercial Finance Cash Friday is a trading name of Lloyds Bank Commercial Finance Ltd. Registered office: No.1, Brookhill Way, Banbury OX16 3EL. Registered in England and Wales no.733011. Not regulated or supervised by the FCA/PRA. Hire Purchase and Leasing and Asset Finance facilities are provided by Lloyds Bank Commercial Finance. When using these products and services your agreement will be with a Lloyds Banking Group company whose terms and conditions will apply.
