Business Funding
​Business funding has a vital role to meet business daily expenses and enabling overall growth. Businesses need finance solutions tailored to their needs and Premier can support you in finding your finance needs. Premier will introduce you to some reputable banks and financial institutions and give you all the support needed for successful applications.
Through our solid business relations with the main banks in Africa, we will lead you in your quest for various possible solutions for your trade objectives. We can help in negotiating for trade & working capital solutions such as:
​
-
Import and export LC
-
Guarantees
-
Documentary Collections
-
Standby LC
-
Bill Discounting
-
Irrevocable Reimbursement Undertaking
-
Transferable LC
-
Import Loans/ Trade loans
-
Selective Receivables Finance
-
Supplier Finance
-
Structured Trade and Commodity Finance
-
Bill Avalisation
-
Overdrafts
-
Short-Term Loans
​​
Below is a description of the main trade finance solutions.
​
Import / Export Solutions - Letter of Credit (LC)
​
A LC is a conditional undertaking given by the bank (i.e. “the Issuing Bank”) at the request of their customer to pay the beneficiary (the Supplier) on behalf of the customer a certain amount stipulated in the LC at a specified time, provided that all the terms and conditions of the credit are complied with.
It is a source of protection for both the Buyer and Seller. Mainly, it mitigates the risk of non-payment for the goods and usually the terms and conditions needs to be complied with, prior to payment being made. For example, depending on the nature of the business involved, the banks may require collaterals and also look at other various factors such as corresponding bank, goods involved and the geographical area of operation.​​
​
​
Import Bill Lodgement
​
There are two types of import bills
​
-
Import bills for collection
-
Import bills under LC
​
Exporters can instruct their bank (the 'Remitting Bank) to send commercial documents (such as invoices, Bills of Lading or Airway Bills) on a collection basis or under documentary credit (LC) to the 'Presenting Bank/Collecting Bank', normally the importer's bank.
Upon receipt of collection documents, Presenting Bank will release documents strictly in accordance with instructions received from the Remitting Bank. Upon receipt of documents under LC, the Presenting Bank will cross-check the document with its corresponding LC terms. In case of discrepancies in the document, the Presenting Bank will advise the Remitting Bank and will release the document strictly in accordance with instructions received from the Remitting bank.
​
Export Bills Collection
Export Bills Collection is a method of payment used in international trade whereby the exporter entrusts the handling of commercial documents to banks and gives the banks instructions concerning the release of these documents to the importer. Banks involved do not provide any guarantee of payment.
​
Bank Guarantees
​
Bank Guarantees are normally provided by a bank to a beneficiary on behalf of an applicant.
Types of Bank Guarantees:
-
Normal Bank Guarantee to secure cheques or invoice payments or others.
-
Tender Bond/ Bid Bonds for tendering or bidding for a new project.
-
Performance Guarantee to guarantee the performance and proper completion of a contract.
-
Advance Payment Guarantee to guarantee advance payment received by customer to start a project and to ensure proper use of advance monies received.
-
Shipping guarantee for release of goods in the case of arrival of cargo prior to the shipping documents.
​
Trade Loans - Import / Domestic Finance
​
An import loan is a short-term advance given by the Bank to the importer of goods or services towards payment of documents received under collection or under LC or towards advance payment for import of goods.
​
​​
Trade Loans - Export / Discounting
​
Export trade loans is a form of short-term borrowing, offering you a flexible means of financing your export or domestic transactions at competitive rates and improving their cash flow throughout the cycle.
​
NOTE: Some banks also provide for hard currency loans, facilities in regard to property development projects, hotel finance, funding feeds (equity provision), margin call (currency comparison) among others.
​
Bill Discounting
​
Bill discounting is the purchase by the bank of agreed trade debts from your suppliers (evidenced in the form of a Bill of Exchange or a Promissory Note) at an agreed discount.
Key features and benefits
​
-
Flexible, efficient, non-recourse finance to suppliers Improves cash-flow for suppliers
-
Removal of counterparty payment risk for suppliers
-
Support negotiations for extended credit terms with suppliers
-
100% of the value of a future receivable purchased at a discounted rate
-
Available in a range of currencies
​
​
Finance your Transactions
​
If you are involved in cross-border transactions as an importer or exporter and if you are looking for any of the above means of trade financing, we at Premier, shall be most pleased to consider your needs and our services include:
​
-
Finding the right banks and financial institutions for your needs
-
Preparing all documentation required for application of trade finance needs
-
Preparing of a comprehensive business plan to support the application
-
Arrange for meetings with the trade finance teams of the banks / financial institutions
-
Our expert trade finance team is at your support throughout the application process.
​​​