Trade finance solutions for imports and exports
Our dedicated trade finance team is readily available to guide and assist you to make informed business decisions on matters of both international and local trade finance.
We’ll help navigate your trading needs
Improve cash flow throughout your business trade cycle with an Absa Trade Loan. It’s a revolving credit line borrowing facility that is flexible, short term and linked to regular or one-off import and export transactions.
What you can expect
- Short-term revolving credit facility (365 days)
- Pre-agreed interest rate
- Credit approval required
- Available only in local currency
- One-off arrangement fee
- A dedicated relationship manager assigned to your account
Applying for a trade loan facility with Absa is straightforward. You simply need to set an appointment with your relationship manager and provide us with the following documents.
- Your business registration documents, such as business name registration certificate (in case of sole traders or partnerships), or company registration certificate and other company formation documents such as memorandum and articles of association (in case of companies)
- Business licence certificate if applicable to your business type
- Documentary proof of business address
- A valid identification document such as passport or national identity card for the proprietor, partners, shareholders and/or directors
- Documentary proof of address such as a utility bill (not more than three months old) for proprietor, partners, shareholders and/or directors
- Audited financials (last three years)
- Cash flow (month-to-month and yearly)
- Absa reserves the right to accept or decline any application based on internal policy.
- We may request additional documentation as deemed necessary.
- Please consult your business banking relationship manager for more information.
*Terms and conditions apply.
*Facility is subject to credit approval.
Guard against Import risks
Make informed business decisions on matters of both international and local trade finance.
Your overseas or local supplier may require you to provide an irrevocable letter of credit in their favour to secure a trade finance transaction. A letter of credit provides a commitment from the issuing bank to pay the supplier contingent on compliance of the terms and conditions of the letter of credit.
- 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.
- We maintain high levels of service and once you have completed the letter of credit issuance requirements, the letter of credit is transmitted vide authentic SWIFT (or other authentic modes) to our correspondent to be generally delivered to the beneficiary’s bankers (advising bank) within 24 to 48 hours of our receipt of your application
- A short-term facility which varies from 30 days to 90 days and may be renewed
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 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.
We will reinstate these instruments automatically without requiring any further amendments. The number of reinstatements will be agreed upon and specified in the credit documentation.
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. We will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit agreement.
Under documentary collections, your overseas suppliers present trade finance documentation to their bankers, which are then forwarded to us to facilitate the collection of the proceeds on behalf of the presenting bank and/or handle the document as agent for the presenting bank:
- Ensure prompt communication and execution of instructions as required.
- Different forms of financing can be arranged to facilitate the import contingent on internal terms and conditions and internal approvals.
Solutions to make exporting work for you
Our dedicated trade finance team is readily available to guide and assist you with your exports.
Given our network of branches in Africa and correspondent banks globally, we will be your idea partner to receive your export letters of credit from banks overseas.
- Export letters of credit are advised generally within 24 to 48 hours of receipt.
- Bank confirmation can be added upon request.
- Confirmation eliminates the risk of default by the buyer, bank risk and country risk.
These are letters of credit that can be transferred from the first beneficiary to one or more additional beneficiaries by the transferring bank.
- We do not issue transferable letters of credit. We will, however, advise you and transfer your letter of credit on your behalf.
- Given the risks inherent in these instruments, our trade specialists are available to further discuss the implications, terms and conditions under this type of letters of credit.
The main types of guarantees/bonds that we provide are payment guarantees, bid bonds, performance guarantees, security (immigration) bonds, advance payment guarantees, shipping guarantees in different circumstances. If you need to issue guarantees overseas, we have a number of correspondent banks spread across a number of countries who offer competitive pricing and quality service.