Import Finance

Import Finance is a flexible short term loan that can help your business to manage cash flow from the date a supplier's invoice becomes payable up to the point of settlement from the ultimate buyer. The two main types of important finance we offer are Letters of credit and Bills for collection.

What does it offer you:

  • Provides greater flexibility and liquidity by bridging the gap between payment for imported goods and receipt of funds through subsequent sales.
  • Allows you to make timely payments to your suppliers.
  • Enhances your business reputation with potential to negotiate more favorable payment terms.
  • Can be used to extend your credit period beyond the terms given by your supplier under Documentary Credits and Documentary Collections.
  • Available through local funding (Naira) and offshore funding (foreign currency).
  • Available for importation of goods.

 

 

For more information:

Please visit a Stanbic IBTC Bank branch near you or call 0700 CALL STANBIC (0700 2255 7826242) or +234 01 270 9676 or email [email protected] 


A Letter of Credit (LC) is sometimes also referred to as a Documentary Credit. A letter of credit is a conditional undertaking given by a bank at your request to another bank in favour of a beneficiary stating that a contract has been established between both parties and payment should only be made upon confirmation that terms and conditions of the Credit has been complied with.

There are various types of LCs in international trade. They include Sight LC, Deferred LC, Transferable LC, Revolving LC, Back to Back LC and Red & Green Clause LCs. Generally LCs can either be confirmed or unconfirmed depending on the parties involved.

Available to support both import and export transactions.

Most secured mode of payment in international trade.

Available in 13 currencies globally.

Risk of non-payment and non-delivery does not exist as both parties are bound by conditions that must be met for both delivery and payment.

Safest and most secured method of payment compared to other methods of payment.

Provides financing structure for importers and exporters.

 


Inward letters of credit (Export)

Outward letters of credit (Import)

You will need to pay N5 000 for the processing and registration of Nigerian Export form.

To verify the authenticity of the credit, you will pay a fee of N2 000.

To rewrite the credit, you will pay a fee of N0.5 per mille subject to USD25 or its equivalent.

For confirmation of commission, 1% subject to a minimum of N5 000 is paid.

You will pay 0.5% of face value where all or part of a credit is transferred.

1% is charged on negotiation of document commission, plus interest if applicable at local rate

1% of face value is charged on credit up to 180days, 1.25% of face value on credit up to 270 days and 1.5% on credit up to 360 days.

Commission of 1% is payable where letter of credit is extended for a period in excess of 12 months from the date of establishment or re-establishment.

A fee of N5 000 is to be paid on extensions.

You will pay N2 000 on any other amendments

You will be charged N3/mille per month where the bill is less than 1 year.

You will also be charged N5/mille per month where bill exceeds 1 year.

N2 500 will be charged if your risk assessment report doesn’t come with a valid FX form M and nothing will be charged if your risk assessment report comes with a valid FX form M.

 


Bills for Collection is a method of payment in international trade. It is a trade arrangement whereby the exporter has agreed to sell to the importer upon acceptance of a bill of exchange that stipulates the specified date upon which payment is expected. The Bill of Exchange is a document that briefly states the underlying sales contract, the amount and the calculated credit days from the bill of lading when importer is expected to make payments to Exporter.

Bills for Collection is seen as a credit from the exporter to the importer and such credit offer is usually earned based on the number of years that both parties have been transacting.

Bill of Exchange must be accepted before documents are released.

Serves the need of both exporter and importer.

Payment is made at a later date agreed by both parties.

Involves a high level of trust.

It’s cheaper than a Letter of Credit.

Gives the importer access to a flexible cash flow management and liquidity.

Provides enough time for importer to sell the goods and pay back.

Provides growth opportunities for importer’s business.

 


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