FINANCE AND INSURANCE
Import and Export Trade Finance
As a company involved in foreign trade you will face many financial and logistical challenges in both the funding and landing of your goods in South Africa.
Your trade finance challenges will include:
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The financing of the goods:
as your supplier will most likely want part or full payment before shipment and you will only receive cash from your clients much later
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The movement of goods:
you will require shipping, marine insurance, and forwarding and clearing in order to land and deliver the goods to your warehouse
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Exchange rate risk:
by the time your goods have landed, the exchange rate may have changed dramatically, negatively influencing your input costs
In order to address all these challenges, we can, through our partner banks provide you with complete peace of mind to manage an end to end solution for your imports, financing of goods through our Trade Finance offering, booking forward exchange cover, all the way to actually collecting and delivering your goods through our Logistics service provider.
Debtor Finance:
Selling goods on credit terms, for 30, 60 or 90 days, is a universally accepted business practice. However, it can exert extreme pressure on an entrepreneur’s cash flow. Our banking partner’s Debtor Finance offering allows you to access the cash tied up in your debtors’ book, because we provide a cash advance of up to 80% of its value.
The bank discounts credit sales for clients to the extent of 80% of invoice value – and adopts one of two approaches in doing so:
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Disclosed debtor finance (via a full debtor management and administration service) or
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Confidential invoice discounting (where the client keeps control of the debtors’ book).
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The debtor financing process generally involves the bank discounting invoices for clients and advancing the funds prior to due date, thus shortening the cash flow period.
Specialised Equipment and Rental Finance:
Equipment Finance provides funding for the purchase of a variety of equipment via instalment sales, lease facilities or rental finance.
Through our partner bank and their associations we can provide equipment rental finance contracts that will add to your company’s BEE score. We will also facilitate a start-to-finish import solution where the importation process is handled by the bank and clients are offered a Rand-based, landed cost price per unit.
Short Term Insurance:
We are able to facilitate through our partner bank independent specialist broking that will cater for the short-term insurance need of individuals and corporate entities of all sizes, at very competitive rates.