Trade finance

What you get

• 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 

Documents required to apply

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)

Please note

• 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

Import letters of credit

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

• 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

• 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.

Import documentary collections

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.