HSBC in Bangladesh has launched a new facility to make it easier for small- and medium-sized enterprises (SMEs) to obtain import letters of credit (L/Cs).

The bank's CEO in Bangladesh, Steve Banner, unveiled the Tradeline facility at a function in Dhaka late last year according to a statement issued by the bank.

Tradeline

Under the facility, SMEs may be eligible for a maximum 1 million taka (Tk 1 million) L/C or certain other specific loans by putting up 25 per cent of the credit. The SMEs would then be able to repay the credit in a series of flexible instalments.

To take up the new facility, SMEs must be based in the Dhaka, Chittagong or Sylhet regions and have three years business experience with an annual turnover of at least Tk 1 million.

More SME products

Speaking at the launch of Tradeline, Banner noted the important contribution of SMEs to Bangladesh's economy.

He also explained that the new facility was the first of several steps HSBC will be taking to broaden the range of services offered to SMEs in Bangladesh.

L/C benefits

The bank's head of corporate banking specifically drew attention to the attraction of HSBC backed L/Cs in the facility.

"Tradeline will help SMEs in Bangladesh to compete effectively on the global stage with the backing of L/Cs issued by one of the world's leading financial services institutions, leveraging the wide distribution network," Mahbub-ur-Rahman said.

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