The Wells Fargo HSBC Trade Bank, the only nationally chartered bank in the US exclusively devoted to international trade, has launched a cross-border lending initiative that makes it the first financial services company to offer financing in both domestic and foreign currency for middle market firms doing business in China.


Where most US banks lend only against a company’s domestic collateral in the US, the Trade Bank’s unique equity joint venture partnership between Wells Fargo and the HSBC Group allows it to finance overseas credit needs of US$10mn 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,” says 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.”


The Trade Bank is the only such institution offering this service to US businesses doing business abroad. The service is best suited for US-based middle market firms earning between US$20mn-US$500mn in revenues with a local presence in China.


“The Trade Bank serves clients engaged in many facets of international commerce, not just trade,” says Tim Evans, chief operating officer of the Trade Bank. “Owing to our unique partnership, we can leverage HSBC’s international capabilities together with Wells Fargo’s proven domestic expertise to provide full financial services support for our customers doing business in China.”