TRADE FINANCE
Provision of short term finance, up to 150 days foreign and 90 days local, to assist a business with the purchase of inventory and raw materials, effecting payment on shipment or on terms: Pre-payments, advance payments, letters of credit.
Benefits:
Enables growth via access to additional working capital.
Flexibility: The client has more negotiating power with their suppliers (discounts)
Enables bulk purchases
Convenience: Importers who cannot obtain terms from overseas suppliers or require longer terms.
Criteria:
Minimum facility value: R2 million
Minimum turnover per annum: R10 million
Must be in business for at least 3 years
Favourable gross profit margins
Established profitable businesses