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Trade Loans
Features:
- Particularly suited to wholesalers and manufacturers.
- Can be used for regular or once-off purchases of goods and raw materials.
- Finance can be provided until payment from the on-sale of goods is received.
Benefits:- Overall borrowing costs are reduced.
- Finance regular or once-off purchases of goods and raw materials through a simple-to-draw, fully-revolving facility.
- Option to use Trade Loans on open account, collections or documentary credit terms.
- Accommodates both high-volume and bespoke transactions.
- Structure Trade Loans to match your trading cycle.
- Make funds available to pay import collections and import Letters of Credit at sight, while extending your working capital.
- Accept shorter payment terms from suppliers.
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Structured Trade & Commodity Finance
Supply Chain Finance
- Optimise cash and working capital management and reduce your supply chain risk.
Supplier Finance- Provides enabled suppliers with the option of accelerating the collection of trade receivable funds (customer’s trade payable) for a discounted cash payment from the bank.
- Corporate buyers use Supplier Finance to support working capital or cash flow initiatives, offering it to selected suppliers to assist them in managing their liquidity.
- Supplier Finance is right for your business because:
- Suppliers are able to discount 100% of their trade receivable from the buyer for cash at any point during the agreed payment term, without recourse, and priced according to the risk marked against the buyer.
- They mitigate the effects of payment term extension and risk within the supply chain.
- They provide tangible support of suppliers
Selective Receivable Financing
- Enables you to improve working capital and effectively manage balance-sheet risk through the purchase of domestic and export trade receivable on a non-recourse basis.
- Designed to fund single or small batches of invoices relating to a small number of credit-approved debtors.
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Receivables Finance
How it works
We purchase the businesses’ right to receive payment from debtors (invoices) and in return we advance up to 80% of the value of the invoices purchased to the business for periods of up to 120 days.
What you get
- Improved cash flow position as we will advance up to 80% of the value of your debtor’s book, with the balance of the invoice value being refunded to your business on receipt of funds from the debtor.
- Surplus cash to negotiate more attractive settlement and bulk purchase discounts with your suppliers as well as reduce associated purchasing costs.
- Surplus cash to compete more effectively in the market by offering more attractive trading terms to your clients, instead of having to give up profits in the form of trade discounts.
- A working capital facility limit that matches the turnover growth of your business, allowing you to take on larger client contracts previously not possible due to cash flow restrictions.
- Assistance by our team of specialists in the debtor administration and credit control area of your business.
Invoice DiscountingQualifying criteria
- Businesses within South Africa, or those that are operating within any of countries that are members of the Southern African Customs Union.
- Should have good controls, processes and finance systems.
Benefits
- The business remains in control of all debtor administration and debtor collections.
- All debtor payments are made into a designated clearing account managed by Receivables Finance to which viewing rights are provided to the client.
Export Invoice DiscountingQualifying criteria
- Debtors located outside of South Africa up to credit insured or bank approved limits.
- Should have good controls, processes and financial systems.
Benefits
- The business remains in control of all debtor administration and debtor collections.
- All debtor payments are made into a designated Customer Foreign Currency account managed by Receivables Finance.
Factoring
Qualifying criteria
- Your business must operate in South Africa or within member countries of the Southern African Customs Union with limited staff resources, unsophisticated controls, processes and financial systems.
- Your business must disclose details of the sale of business debt to us.
Benefits
- Reduced workload. We perform all debtor administration and credit control functions, including the sending out of monthly statements.
- A centrally managed clearing account into which all debtor payments are made.
Export Factoring
Who can qualify
- Businesses located outside of South Africa.
How it works
- We provide debtor administration and credit control functions, including sending out monthly statements which specify debt has been sold to the bank along with specific payment instructions.
- This is a disclosed facility where the sale of the business’ foreign debt to the bank is disclosed to the foreign debtors.
- Ideal for businesses with limited staff resources, less sophisticated controls, processes and financial systems.
- We have a designated Customer Foreign Currency account where all debtor payments can be made.
Selective Invoice Purchasing
Who can qualify
- "Blue chip" businesses located in South Africa.
How it works
- We provide discounting of select non-recurring invoices and details of the transaction are disclosed to you.
- Confirmation is usually obtained from you that payment will be made into a designated account which we managed on your behalf.
- Improved cash flow position as we will advance up to 80% of the value of your debtor’s book, with the balance of the invoice value being refunded to your business on receipt of funds from the debtor.
Need more help?
Contact your nearest branch or your International Business Banking Specialist.
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