All licensed banks are authorized to provide loans to residents and non-residents in the currency of their choice. Letters of credit and other financial instruments are widely used to protect participants in trade arrangements. All banks maintain close working relationships with correspondent banking institutions. The financial system is highly developed and efficient. The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing.
Terms of payment depend on the relative negotiating strength of the buyers and sellers.
U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them. Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust. The importance of trade finance to Hong Kong has resulted in a high level of bank efficiency in providing import payment services. Letters of Credit, document collection and international remittance are widely available. All licensed banks are authorized to provide loans to residents and nonresidents.