Treasury & Securities Services
J.P. Morgan helps clients manage currency and market risk through our combined capabilities as a leading trading house, premiere investment bank and global custodian. Our size, scale and expertise translate into fast, competitive and consistent pricing for all execution services, including:
ACC – advance on currency exchange contract: J.P. Morgan advances the amount in BRL currency equivalent to the value of exports in foreign currency. Under ACC, proceeds are advanced before shipment of goods.
ACE - advance of delivered drafts : J.P. Morgan advances to exporters the amount agreed between the parties in the exchange contract after the shipment of goods.
The exporting company, located in Brazil, based on its flow of exports, receives a loan from J.P. Morgan, prior to shipment of its goods. In practice, it is an anticipation of the funds that the exporter expects to receive from the sale of its future exports.
BNDES - EXIM
The lines of BNDES-exim intended to finance the export of goods and services in the pre shipment phase, with Banco J.P. Morgan as an accredited BNDES agent.
These loans are given for export of goods and services involving nationalization index equal to or greater than 60% and are part of the list of registered products by BNDES (Carta Circular No. 31/2007)
NCE (Nota de Crédito à Exportação – Export Credit Note) is a trade loan product extended to Brazilian exporters to finance exports or production of exported goods.
Funding is provided in local currency (Reais) to meet companies need for working capital to acquire goods or services related to the production of exports.
This is a trade financing alternative for importer. J.P. Morgan pays the exporter in foreign currency and the importer pays the bank in a future date.
Financing using ECAs
Finance the Brazilian importer to buy goods and services from other countries, through structures involving ECAs (Export Credit Agencies). These agencies aims to encourage the export of goods and services from their country of origin, through the issuance of guarantees and / or insurance, or - in specific cases - providing direct funding
It is a product which provides JPM with the ability to offer trade financing to specific importers by discounting Drafts/Bills of Exchange (“Boe”).
A Collection is a trade payment mechanism in which a seller uses his bank as "agent" in collecting payment from an overseas buyer.
Import Collection: Upon shipment of goods, the seller submits draft and/or commercial documents to their bank (remitting bank) with instructions that the documents may be released to the buyer only upon payment (documents against payment) or acceptance (documents against acceptance). The remitting bank then submits the documents to J.P. Morgan as the collecting bank for the buyer.
Export Collection: Upon shipment of goods, the seller submits draft and/or commercial documents to J.P. Morgan (remitting bank) with instructions that the documents may be released to the buyer only upon payment (documents against payment) or acceptance (documents against acceptance).
Letters of Credit
A Letter of Credit is a written undertaking issued by a bank upon the request of the Buyer in favor of the Seller (normally through an advising bank) and a payment at sight or at a later stage against presentation of documents which conform to specified terms and conditions.
Import Letter of Credit: payment method in which the J.P. Morgan, at the request of the importer customer, issues a letter of credit guaranteeing the foreign exporter's receipt for export, provided that exporter complies with agreed terms and conditions.
Export Letter of Credit: an operation in which J.P. Morgan, at the request of the Bank of Importer, advises or confirm the letter of credit opened in favor of the exporter.
Advanced payment bond: Supports an obligation to refund an advance payment made by the buyer/beneficiary to the supplier/account party.
Performance Bond: Once the supplier has been awarded the contract, he/she may be required by the buyer to post a bond assuring that he/she will perform and execute the contract in accordance with all its terms and conditions.
Bid bond: Supports an obligation of the account party to execute a contract if the account party is awarded a bid.
Standby Letter of Credit (SBLC) financial: Supports an obligation to pay money, including any instrument evidencing an obligation to repay borrowed money.
Local Guarantee (Fiança)
Local Guarantee (Fiança) is a document in which J.P. Morgan guarantees, at the request of one of its customers (Applicant), an obligation to a named beneficiary.
A Local Guarantee is not meant to be drawn on, it only happens when the applicant for whom it is issued fails to perform an obligation.
Supply Chain Finance Onshore (risco sacado)
The global supply chain represents a significant pool of working capital for multinational organizations.
Our supply chain finance solutions help buyers (based in Brazil) and suppliers (also based in Brazil) meet their working capital, risk mitigation and cash flow objectives with a full spectrum of open account financing propositions.
Our buyer-led solution, supported by a global, multilingual and multicurrency platform, links buyers to more than 12,000 suppliers, streamlining the payables process while providing suppliers with the option to receive early payment.
Supply Chain Finance Offshore
Financing solution for supply chain that allows buyers (based offshore) offer their suppliers (based in Brazil), the option of receiving advance payment by selling their receivables, reducing the days sales outstanding.