Wherever in the world you may be, you can rely on our teams of specialists to help you achieve your specific business objectives

The choice of a trade services provider is vital in a world where both speed and attention to detail are crucial and where you need a partner who can seamlessly combine local service excellence with global reach. At HSBC, we make it our business to know your business, intimately and thoroughly.

As one of the largest trade services organisations in the world, we have local trade experts available to support you wherever you do your business. We can help put you in control of your operations and assist you to streamline your trade processes with our advanced technology. Our aim is to ensure that your import and export transactions are managed effortlessly and effectively, providing your business with the best possible opportunities to grow.

We understand that by putting our customers' interests first, we too are rewarded and able to shine. It is this kind of win-win situation that has helped us to secure a run of best trade finance bank awards from Global Finance, The Asset, Cargonews Asia, Trade Finance, Asiamoney, Trade & Forfaiting Review and FinanceAsia, titles we are proud to have won in consecutive years.

At HSBC we are always on the look out for ways which assist customers to grow their business internationally. Global links was created with this in mind.

HSBC has played a key role in international trade since 1865, when Hongkong Bank, the founding member of the HSBC Group, was established to finance and facilitate the growing trade between China, Europe and the USA.

With our extensive experience in international trade, HSBC is ideally placed to support the long-term growth of your business. We combine local service excellence with global reach, supplemented by advanced technology. HSBC has an extensive network of over 8,500 offices in 86 countries and territories.

How it works

A bank guarantee provides the beneficiary with access to a sum of money if the principal (you) fails to fulfill contractual or other obligations in respect of an underlying transaction, contract or order.

Key features

• Provides security for either financial or non-financial obligations.
• Is a separate transaction from the underlying commercial contract on which it may be based.
• Payment of the sum agreed in the guarantee will be made in accordance with the terms of the guarantee, on presentation of a conforming demand from the Beneficiary, in spite of any issues arising from the underlying commercial contract.
• The wording is a matter for negotiation between the Applicant (you) and the Beneficiary (your customer), subject to acceptability by HSBC. A selection of sample wording can be provided on your request.
• We, as part of HSBC Group, will provide you with attractive terms on foreign guarantees enabled by our guarantee processing capability established in over 77 countries and territories.
• We issue guarantees through HSBC Group offices overseas and our extensive correspondent banking network.
• Our specialised Guarantees Team has wide experience and can provide you with valuable assistance to support your business. Talk to us, even if you don't bank with HSBC.

Types of guarantees

Due to their flexibility bank guarantees can be utilised to cover many kinds of risks in addition to those mentioned below. For more details please contact us.

Tender Guarantees/Bid Bonds

• Often called for in support of contract tenders, particularly in international trade situations.
• Provides the beneficiary with a financial remedy if the applicant fails to fulfill any of the tender conditions.
• Normally submitted with the other documents called for in the invitation to tender and remain valid during the period of tender, plus a grace period to allow the beneficiary to make demand.

Performance Bond

Most common form of guarantee, used in a variety of situations. Normally required at the time of commencement of the contract and will extend over the duration of the contract, plus a grace period to allow the beneficiary to make demand in the event of non-performance of the obligations covered by the guarantee.

Advance Payment Guarantees

• Used where the applicant calls for the provision of a sum of money at an early stage of the contract. The beneficiary can recover the amount paid in advance, or a part thereof, if the applicant fails to fulfil their underlying contractual obligations.
• May provide for pro rata reductions to the guarantee amount on presentation of certain documents or on a specified date or dates.
• Duration will depend on the underlying contract, but many run up to the anticipated date of the final delivery, plus a grace period to allow the beneficiary to make demand in the event of non-performance of the obligations covered by the guarantee.

Retention Money Guarantees

• Contracts may allow the beneficiary to retain a proportion of the contract value once substantial completion of the contract has taken place and the beneficiary may be prepared to release this retention money to the applicant against the presentation of a guarantee.
• Duration of the guarantee depends on the underlying contract terms and may extend for a period after completion of the contract.