Trade for Corporates Facilitating multi-banking solutions in trade & supply chain finance using SWIFT for Corporates Decembre 2014 Trade settlement with Open Account Open Account can mean: • Partial payment in advance (before shipment) • Full payment in advance (before shipment) • Payment after shipment (below example) • Payment at sight Back office Back office 1 Contract (P/O) with Open Account as Payment Term 2 3 Importer Shipment of goods and documents Exporter MT 101 <request for transfer> MX pain.001 5 5 MT 910 <confirmation of credit> MX camt.054 MT 940 <customer statement> MX camt.053 MT 900 <confirmation of debit> MX camt.054 MT 940 <customer statement> MX camt.053 MT 103 <customer credit transfer> Account servicing institution 4 Account servicing institution Trade Settlement with Letter of Credit Back office You can also use SWIFT for Corporates for Guarantee / Stand-By LC Back office 1 Contract (P/O) with LC as Payment Term 5 Importer Shipment of goods Exporter 2 FileAct tsmt.xxx.tradedocuments Electronic trade docs. MT 798<message index MT 770> MT 798<LC application details MT 700> MT 798<LC application extension MT 701> 4 MT 798<message index MT771> MT 798<LC issuance notification MT 700> MT 798<LC application extension MT 701> 3 LC Issuing Bank 6 5 MT 798<message index MT 774> MT 798<LC credit advice MT 700> MT 798<LC credit advice extension MT701> MT 700<LC issuance> UCP 600 Unified rules for LC LC Advising Bank Amendment acceptances, advises, discharge, refusal, payment notification & advice are also covered by MT798 Trade Settlement with Bank Payment Obligation (BPO) Back office 1 Back office Contract (P/O) with BPO as Payment Term 5 Shipment of goods Importer 10 Exporter Invoice and shipping documents 2 FileAct <tsmt.019 initial baseline submission> FileAct <tmst.xxx.trade docs> scan copy P/O FileAct <tsmt.014 data set submission> FileAct <tsmt.xxx.tradedocuments> Electronic copy of transport and invoice FileAct <baseline notification> FileAct <tsmt.013 Transport and invoice data match report > FileAct <tsmt.013 match report and payment confirmation> 9 3 8 7 Transport and Invoice data set UR BPO Match reports 9 Inform of BPO establishment TSU Obligator Bank 4 Matching PO vs. trade dataset BPO Issuance 6 Match reports BPO Recipient Bank Baseline resubmission, amendment, mismatch acceptance and rejection are also covered by tsmt BPO benefits for Importer and Exporter Certainty to be paid on time Payment Assurance Easier procedure for BPO issuing Turn paper to cash faster (up to 50% vs. LCs ) Receivables finance BPO Increased operational efficiency BPO supports pre and postshipment financing Payables finance Risk mitigation Safer than open account Faster identification of trade discrepancies How Swift Can Help? Connectivity Messaging Format Conversion Open Account Web-based (Lite2) or In-House (Alliance Access) Transactional (FIN) or Bulk Payment File (FileAct ) Proprietary to ISO (MT101 or pain) Letter of Credit Web-based (Lite2) or In-House (Alliance Access) Transactional (FIN) and Electronic doc. (FileAct) Proprietary to MT798 BPO Web-based (Lite2) or In-House (Alliance Access) Data XML (ISO 20022) and Electronic doc. (FileAct) Proprietary to XML (ISO 20022) Bank's onboarding Implementation Services Implementation Enabling partner's and configuration banks for legal and of Swift operational connectivity and readiness services Standards Training Standards training for payments, LCs and BPO flows 6 16 banking groups live on BPO Including 6 of the top15 Trade banks (based on Cat 7 traffic) 7 59 banks adopting BPO Including 18 of the top20 Trade banks (based on Cat 7 traffic) 8 Thank you Website: Email: LinkedIn Groups: Your SWIFT contact: www.swift.com/corporates [email protected] Corporates and Supply Chains on SWIFT Regional contacts 9
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