Export Factoring
Transaction Structure
- The African company exports the Product to some European or American or Asian country.
- There is usance involved in the exports
- Post shipment, the invoices are bought / financed by the Lender.
- Lender transfer money to the African Exporter.
Permitted End-uses
- Payment of funds against usance invoices / bills
Typical Due Diligence of Borrower
- Profile of the Buyer
- Historical shipments and deliveries to the Buyer
- Any performance related dispute between the Buyer and African exporter.
SBLC Backed Trade Finance
Transaction Structure
- Local African Bank issues SBLC on behalf of African client
- The SBLC can be in favor of 3rd Party or for borrowing of Borrowing of the African Company (“Borrower”)
- The Lender sets up the Facility for the 3rd Party of African Company in an off-shore market.
- Facility related documentation will be done with the Borrower
- The Lender will do a due diligence on the Borrower for Facility.
Permitted End-uses
- Payment of purchases of materials by the Borrower
- Bridge financing of projects.
Typical Due Diligence of Borrower
- Usual corporate related KYC and financial due diligence
- The End use of money and whether same ties up with business model
- Repayment mode of facility.
- Whether from regulatory perspective, it is allowed to issue such a SBLC from the country of issuance of SBLC.
Advance Payment Guarantees
Transaction Structure
- Local African Bank issues APG/ EPBG on behalf of African client
- Beneficiary is a overseas “Buyer” of the Product
- Over Buyer raises financing and gives advance to African exporter client.
- Facility gets repaid through delivery of products over a period of time as per contract or in case of non-performance APG/ EPBG will get invoked.
Permitted End-uses
- Purchase of goods in future from the African Exporter to overseas buyer.
Typical Due Diligence of Borrower
- Usual corporate related KYC and financial due diligence of the African Exporter and overseas Buyer.
- Whether the products mentioned in the Contracts are similar the ones exported by the African Exporter.
- Its possible only if the African Company has exports from it’s country of establishment.
f A Q
Most of Answers for your Queries are Here
Yes, you can. We offer payment against shipping documents. For Pre Shipment packing advance, kindly call us for discussions.
We source reliable buyers at the best international price. We can also arrange all financing and documentation for the shipment. Please send us details of your products, and we can then take it up from there.
We do not charge any upfront fees for any trading transactions. Our fees are paid to us on completion of the trading activity.
However, if you wish to seek our assistance in securing financial guarantee for credit enhancement of your trading transactions, there is an upfront fees for issuance of the instrument and lenders service fees. More on this on receipt of your requirements.
There are two methods, (1) Against Financial Guarantees and (2) Buyers Credit for Government through Ministry of Finance. The typical beneficial repayment term is from 7 to 25 years. Funding can happen within 60 days for financial guarantees, and from 6 to 9 months for sovereign buyers credit