Because your loan requirements are unique, we structure loans
tailor-made to meet your individual needs.
- Our options are diverse and flexible, and may take the form of
commodity loans; asset finance; export finance; collection of bills
and revising acceptance and credit facilities.
- These loans can be secured by confirmed orders from the
Pre Shipment Finance
Direct financing to exporters to assist in the
manufacturing/processing of export orders. The main objectives
behind preshipment finance or pre export finance are to enable
- Procure raw materials;
- Carry out manufacturing process;
- Provide a secure warehouse for goods and raw materials;
- Process and pack the goods;
- Ship the goods to the buyers;
- Meet other financial cost of the business.
Pre shipment credit is only issued to that exporter who
has the export order in his own name. Preshipment allows exporters
to meet confirmed export orders to reputable overseas
Post Shipment Finance
This is short term financing tool which is
essentially discounting of an exporter's receivables. Post shipment
finance bridges the gap for manufacturers/exporters between the
costs expended on production and the receipts from export sales.
Benefits to the exporter are as follows:
- Exporter's working capital cycle is shortened;
- Allows for increased production levels;
- Cost effective risk protection against buyer defaults;
The Exporter is granted the option to provide greater credit
terms to the foreign buyer perhaps even more than international
competitors can. This creates a clear competitive advantage.
Letters Of Credit
A Documentary Letter of Credit is an arrangement for the safe
negotiation of a payment and credit transaction, especially in
connection with International deliveries of merchandise.
- A documentary credit covering the merchandise consists of an
irrevocable written undertaking on our part to pay, on instructions
from the buyer, a certain amount to the seller (beneficiary). We
carry this out within a prescribed period and against surrender of
stipulated documents covering the shipment of goods contracted
between the seller and the buyer.
- The documents usually involved are bills of landing, insurance
documents, certificate of origin and quality certificates.
- Letters of Credits help you explore international markets. We
have letters of credit to reduce credit risk to sellers in both
domestic and international sales arrangements.
By having us issue a letter of credit, you are able to
substitute the bank's credit worthiness for that of the
Bills for Collection
A collection is a payment mechanism available to exporters and
importers for settlement of cross border transactions. This service
allows documents proving shipment of goods to be sent via BancABC
to any other bank in the buyer's country. The release of the
documents to the buyer is dependent on special conditions given by
the seller. Collections are classified into Documentary Collection
or Clean Collections.
- This is an open account payment via a bill of
exchange or draft whereby the seller ships the goods then sends the
bill of exchange to the buyer. Unlike a documentary collection,
the draft/bill of exchange is not accompanied by commercial
documents (e.g. invoices, bills of lading, certificate of origin
Collection- When shipping the
goods, the exporter assembles the relevant documents such as
invoices and the bill of lading. These are then handed over to the
(remitting bank) accompanied by specific instructions to be
followed by the banks (both remitting and collecting bank).
The remitting bank then prepares a collection order, which will
be sent to the collecting bank. The collecting bank will handle the
documents in accordance with the accompanying specific
instructions. Since the importer can only access the shipment
against the documents, the exporter retains control of the goods as
documents are only released under specific instructions; which
safeguards the exporter. Thus documents can be released to the
importer against payment (D/P) or against acceptance (D/A). Banks,
therefore, act as intermediaries to collect payment from the buyer
in exchange for the transfer of documents that enable the holder to
take possession of the goods though the bank does not act as surety
of payment but rather only as collector of funds for documents
Exchange Control Advisory
We interpret Statutory Instruments and Exchange Control
directives with regards to Foreign Exchange and International
We offer Advisory services to stakeholders on Exchange Control
- We process international transfers through various ways such as
telegraphic transfers and drafts in line with existing
- We seek Exchange Control approval on payments that require
Central Bank authorisation.
- We process export shipments and ensure compliance with Exchange