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Trade finance solutions for imports and exports

Make use of our timeous trade finance solutions to help you manage risks and negotiate credit terms, enhancing your ability to trade globally.

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Guard against import risks

We offer short-term financing to help facilitate short-term working capital needs. Let us pay your suppliers and convert the payment into a short-term trade loan.

Explore our options

Export letters of credit

Export letters of credit are advised within 24 hours of receipt. Upon request, our confirmation may also be added.

Confirmation eliminates the risk of default by the beneficiary to the bank and can facilitate access to a wide variety of finance solutions, both before and after actual shipment has taken place.
Import letters of credit

Your overseas supplier may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction.

Our network of branches and correspondent banks enables us to issue letters of credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Subject to fulfilment of all our requirements, our policy is to ensure the beneficiary's bankers receive our letters of credit within 24 hours of our receipt of your application.
Revolving letters of credit

Revolving letters of credit are useful for buyers and sellers who have a long-standing trading relationship.

They involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed.
Depending on your needs, we will undertake to reinstate these instruments automatically and without the requirement of any further amendment from you.

The number of times within which this can take place will be agreed upon and specified in the credit documentation.
Standby letters of credit

While payments under regular letters of credit are generated by the performance of the exporter under a specified trade contract, payments under standby letters of credit are generated by the default of the importer under a specific trade contract. Standby letters of credit are irrevocable and payable on demand.

Upon your request as an importer, we can provide this form of conditional undertaking on your behalf to the beneficiary.

Should you fail to make settlement, we will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit agreement.
Import letter – credit financing

This is usually applicable in instances where certain unfavourable market conditions exist on the due payment date and for one reason or another, the applicant is not willing to make settlement.

We can arrange to make settlement of import letters of credit on your behalf and refinance you locally up to 180 days after payment date, depending on your requirements.

This arrangement can be applied in various instances and ultimately provides you with flexibility to manage your cash flow.
Import documentary collections

Under documentary collections, your overseas suppliers present appropriate documentation to their bankers, which are then forwarded to us to facilitate collection on their behalf.
Bills of exchange

Exporters may require a third party, usually a bank, to guarantee payment of a bill of exchange drawn on an importer under a trade contract.

This action is known as 'avalisation' and can be provided on behalf of the exporter upon request.

By endorsing the bill on the back, the bank commits itself unconditionally to pay should the drawee default.

An 'avalised' bill substitutes the bank's risk for the importer’s risk, which provides the exporter with the assurance that the payment will be made.

This bill can subsequently be discounted or used to negotiate better credit terms, which can enhance the trading relationship with the importer.

Solutions to make exporting work for you

Exporting? We are with you all the way, from before and after shipment and with tailor-made solutions to fulfil your trading obligations.

Explore our options

Export letters of credit

Your supplier abroad may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction.

Our network of branches and correspondent banks enables us to issue letters of credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Subject to fulfilment of all our requirements, our policy is to ensure the beneficiary's bankers receive our Letters of Credit within 24 hours of our receipt of your application.
Transferable letters of credit

These are letters of credit that can be transferred from the first beneficiary to one or more additional beneficiaries by the transferring bank.

We are currently actively involved in issuing and advising transferable letters of credit on behalf of and in favour of our customers.

Given the risks inherent in these instruments, our trade specialists are available to further discuss the implications, terms and conditions under this type of credit.

Get immediate cash with forfaiting

Forfaiting is a means of financing used by exporters that enables them to receive cash immediately by selling their medium-term receivables (the amount an importer owes the exporter) at a discount

What you can expect

How it works

Under this specialised facility, we purchase obligations falling due at some future date arising from the sale of goods or services without recourse to the seller.

This is a transaction-based facility and is generally evidenced by the use of negotiable instruments such as bills of exchange and promissory notes guaranteed by a third party – usually a bank.

Traditionally used in financing of exporters, forfaiting has evolved to also suit local traders/sellers and we have been at the forefront of this.

Streamlined payments to suppliers

With our electronic banking system, payments to suppliers will be facilitated easily and will provide access to cash for your suppliers.

Prepayment to suppliers

You issue post-dated instructions to pay specified suppliers at a future date.

Easy, fast and electronic

We will facilitate the payment process electronically – making it easier and quicker.

Direct access to cash

With our electronic payment system, your suppliers will get direct access to cash to provide services or products.

What you can expect

How it works
You issue post-dated instructions to pay specified suppliers at a future date.

You then supply us with a written agreement from a supplier who has to be prepaid.

Telegraphic transfer charges, interest on discounting and handling fees will be applied to the supplier’s account at pre-agreed rates.
Benefits
We will discount the amounts payable and remit the net proceeds to each supplier without recourse once a written agreement has been issued

The payment process will be facilitated electronically

Suppliers will be prepaid and have access to cash required for delivering services
How to get it

For further information about our trade solutions, please contact your relationship manager.

Trade solutions for company growth

We cover the whole spectrum of trade finance solutions – from guarantees, bonds and indemnities to invoice and bill discounting.

What you can expect

Guarantees, bonds and indemnities
Benefits

Bank guarantees provide a number of advantages to both international and local businesses:

They enable you to tender for business that you might have previously considered out of reach.

They can improve the terms of your tenders and they can help you negotiate better terms on contracts.

What you get

The main types of guarantees and bonds that we provide are:

Bid bonds

Performance guarantees

Custom bonds

Advance payment guarantees

Retention money guarantees

Shipping guarantees

Maintenance guarantees
Invoice and bill discounting
What you get

Different types of either financial or commercial documents are exchanged during trade transactions. These provide evidence of a transaction as well as acknowledgement of debt.

This specialised form of trade financing is available with or without recourse to your business, depending on the credit assessment of both parties involved in the transaction.

Benefits

It enhances your cash flow position.
It is competitively priced.

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Toll Free: 0800750078
+255 (0) 746 882 000
from 08:30 to 17:00

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