Wing Bank recently launched a campaign to raise awareness of how its trade finance and customs duty payment solutions can help Cambodian businesses manage cross-border trade more efficiently. Under this campaign, B2B Asia News is producing a series of video interviews with customs and trade finance experts from Wing Bank and other leading institutions.
In Episode 2 of this video series, B2B Asia News sat down with Sok Leng, Chief Payroll & Corporate Banking Officer at Wing Bank, to further discuss what solutions and services Wing Bank provides shipping and logistics companies in Cambodia.
WATCH: Episode 1 on How Wing Bank Helps Businesses Protect Their Working Capital.
B2B Asia News: Does Wing Bank’s trade credit financing service help shipping companies prepare customs duty documentation?
Sok Leng: “Actually, it’s the shipping company itself that prepares tax documentation directly with the customs department. The bank acts as an intermediary for payment. Meaning, after they receive payment advice for customs tax for customs clearance, they just present it to the bank. Our bank then processes it through our system and we consider this as approving loan credit, allowing us to pay the General Department of Customs and Excise of Cambodia (GDCE) immediately. Afterwards, we receive a receipt confirming to the shipping company that the taxes have been paid, so the shipping company can take the confirmation documents to release goods from the port to distribute to their end customers.”
B2B Asia New: What if a logistics company wants to increase its loan amount? For example, if I import cars three to four times a month, can I request a loan? What are the conditions for Wing Bank's credit services?
Sok Leng: “We do not limit the number of times you can import. Instead, we set a credit limit approved by the bank. For instance, based on our assessment of your company, suppose you receive a USD 1 million limit for direct customs clearance payments made through Wing Bank. In this case, no matter how many times you import, it is not an issue, provided that the company does not exceed a seven-day payment delay starting from the bank's first, second, or third disbursement, and the total amount does not exceed USD 1 million. However, in special cases where imports exceed USD 1 million, you must inform the bank in advance to request a limit increase.”
B2B Asia New: So, the limit isn't on the import frequency, but on the monetary amount?
Sok Leng: “The per customer limit means a single client can request up to USD 5 million. But for this USD 5 million, for all clients, we have an overall ceiling set for the logistics sector reaching up to USD 200 million. For all shipping sectors, the total is USD 200 million. Each client can request up to USD 5 million, and if the request exceeds USD 5 million, in special cases, does the client need to submit an application? Yes! We will review whether they have enough collateral, and we can grant an additional temporary limit. For example, it might not just be USD 5 million, we can add USD 2 million more, reaching USD 7 million, just for the single transaction that the client needs to clear. Afterwards, they must return to the regular USD 5 million limit.”
B2B Asia News: Besides customs clearance documents, what additional solutions does Wing Bank offer to logistics companies?
Sok Leng: "Logistics companies sometimes need revolving funds or working capital, and in those cases, they can also explore credit options with Wing Bank. Second, the bank can provide financing for warehouse construction. So, our credit services in this sector are not only limited to paying customs duties, it can also expand to working capital for importing goods and warehouse services.
"When Wing Bank facilitates customs tax payments, it helps lower overall transportation costs. Lower costs mean better import conditions for the clients of logistics companies. Compared to those who do not use bank services, or use other banks, logistics companies using Wing Bank’s services gain a distinct pricing advantage. With competitive pricing, they can better support their clients to import even more.
“Consequently, turnover efficiency is much faster. This means as soon as goods arrive, customs duties can be paid immediately, delivering the items directly into the hands of the importers. Ultimately, this speeds up the overall economic flow.”
B2B Asia News: To conclude, what words of advice or message do you have for business owners, as well as logistics companies, regarding the use of Wing Bank’s credit services?
Sok Leng: "At Wing Bank, we offer a wide variety of business credit options. We have services for customs duty payments, import services, and financing for importing goods and warehouse construction for logistics companies. For individual businesses as well, Wing Bank has competitive products and services to support all local enterprises.
“Wing Bank is a 100 per cent Cambodian-owned bank. We want to stay close to business owners and enterprises in Cambodia across all contexts, driving our economic progress and momentum forward into the future.”