Unlike most US banks, the joint venture partnership between HSBC and Wells Fargo can finance overseas credit needs of $10 million or less secured in part by collateral held in China.
The Trade Bank is able to supply the missing piece to US-based middle market companies who need financing overseas, said Sanjiv Sanghvi, Trade Bank CEO. Securing credit in-country, in a local currency, based on overseas collateral helps companies expand overseas without tapping out their potential for domestic growth.
At present, the bank is the only such institution offering this service to US businesses doing business abroad. The service is most suited to US-based middle market firms earning between $20 million to $500 million in revenues with an established local presence in China.
The joint venture company delivers extensive trade services, cash management and international treasury services to its online customers through Wells Fargo’s commercial electronic office business portal. It also brings its customers local market knowledge through the HSBC network, which covers 76 countries and territories.
