Trade finance
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Whatever your trade needs, you need a banking partner who can enhance your business transactions by financing the trade. With our complete range of trade finance instruments and products, we can assist you with structuring transactions for your business, no matter how complex.
As your business grows or expands into new markets, it is more important than ever to have a banking partner you can trust, and who understands different markets. With connections to 20 countries in Africa, we can facilitate international trade and investment flows within Africa, and between African countries and global markets, to promote inclusive economic growth on the continent.
Some of the benefits
Get certainty of payment
Gain the comfort of knowing you will receive payment
Improve your cash flow
Speed up cash flows, collect payments on outstanding invoices
Make safe, reliable transactions
Strengthen your payment position and handle trade risks.
Mitigate risk in trade
Our trade and trade finance products ensure your working capital requirements and risk mitigation needs are met.
How we can assist you
- Guarantees: A guarantee is a written undertaking issued by a bank (guarantor) at the request of the principal (obligor) in favour of the beneficiary undertaking to make certain payments on behalf of the principal in the event the latter fails to make a payment or perform in accordance with the terms of the contract, the demand for payment can be supported by document(s) stipulated in the guarantee. Stanbic IBTC Bank may issue a guarantee for the principal and also advise it to the beneficiary and if required, may re-issue a guarantee to the second beneficiary.
- Documentary Credit (Import & Export): A letter of credit is a conditional undertaking issued by the Issuing bank at the request of the applicant to effect payment to the beneficiary for a specified amount at a stipulated time provided the beneficiary presents document which comply with the terms of the letter of credit. Stanbic IBTC Bank may issue the letter of credit for the applicant and advise the letter of credit to the beneficiary, provide working capital solutions to the buyer (import financing) and to the beneficiary (discounting).
- Documentary Collections (Import & Export): Documentary collections entail the handling of documents by intermediaries (mainly banks) in accordance with the instructions of the drawer (seller or exporter) without an undertaking to pay by the intermediaries. The drawer has the comfort of the involvement of intermediaries to remain in control of goods even after shipment. Stanbic IBTC Bank may facilitate both import and export collection across presence markets.
- Invoice Financing (Buyer): For importers who trade on open account terms, Stanbic IBTC Bank offers Invoice Financing to raise short-term trade financing against commercial invoices and related transport documents. Invoice Financing is suitable for buyers who need to finance raw materials, goods and services. It ensures that you have sufficient cash to settle supplier invoices on the due date while providing sufficient time for you to sell and collect receipts to pay the bank. Stanbic IBTC Bank can finance up to 100% of the eligible invoice value.
- Invoice Financing (Seller): For sellers who trades on open account terms, Stanbic IBTC Bank offers Invoice Financing to raise short-term trade financing against commercial invoices and related transport documents. Invoice Financing is suitable for sellers who need to unlock cash held up with debtors. It ensures that you have sufficient cash to fund your ongoing operations without worrying about liquidity. Stanbic IBTC Bank can finance up to 100% of the eligible invoice value.
- Invoice Financing Pro-forma: With Stanbic IBTC Bank’s Proforma Invoice Financing, buyers and importers who trade on advance payment terms are able to raise short-term trade financing. Our solution facilitates both domestic and cross-border trade, with the payment of loan proceeds made directly to the suppliers of goods or services. The financing amount would not exceed the value of the Proforma Invoice and the loan tenor should align to the expected date of submission of shipping documents.
- Pre-shipment Financing: As sellers need to ready goods for shipment they may need to obtain working capital financing. Pre-shipment financing allows for sellers, based on a clear contract of sale, PO or an LC in their favour, to request financing from the bank. The amount of finance required by the seller typically aligns to the costs required to ready goods for delivery/shipment with the loan tenor aligned to the expected date of submission of shipping documents. The product can be used to facilitate both domestic and cross border trade.
- Receivable Discounting: Stanbic IBTC Bank discounts negotiable instruments in the form of promissory notes and bills of exchange (drafts), as well as non-negotiable instruments such as invoices. Our Receivables Discounting solution offers several, flexible structuring options to meet your needs. Our solutions are simple, efficient and transparent, and are provided through our online platform where suppliers transact with Stanbic IBTC Bank.
- Supplier Finance: Supplier Finance through Stanbic IBTC Bank is a buyer-centric, post-shipment trade finance solution that provides suppliers with liquidity without compromising a buyers’ accounts payable cycle. Stanbic IBTC Bank’s Supplier Finance solution is simple, efficient and transparent, and is provided on an online platform where the buyer and their suppliers transact with the bank.
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How we can assist you
- Guarantees: A guarantee is a written undertaking issued by a bank (guarantor) at the request of the principal (obligor) in favour of the beneficiary undertaking to make certain payments on behalf of the principal in the event the latter fails to make a payment or perform in accordance with the terms of the contract, the demand for payment can be supported by document(s) stipulated in the guarantee. Stanbic IBTC Bank may issue a guarantee for the principal and also advise it to the beneficiary and if required, may re-issue a guarantee to the second beneficiary.
- Documentary Credit (Import & Export): A letter of credit is a conditional undertaking issued by the Issuing bank at the request of the applicant to effect payment to the beneficiary for a specified amount at a stipulated time provided the beneficiary presents document which comply with the terms of the letter of credit. Stanbic IBTC Bank may issue the letter of credit for the applicant and advise the letter of credit to the beneficiary, provide working capital solutions to the buyer (import financing) and to the beneficiary (discounting).
- Documentary Collections (Import & Export): Documentary collections entail the handling of documents by intermediaries (mainly banks) in accordance with the instructions of the drawer (seller or exporter) without an undertaking to pay by the intermediaries. The drawer has the comfort of the involvement of intermediaries to remain in control of goods even after shipment. Stanbic IBTC Bank may facilitate both import and export collection across presence markets.
- Invoice Financing (Buyer): For importers who trade on open account terms, Stanbic IBTC Bank offers Invoice Financing to raise short-term trade financing against commercial invoices and related transport documents. Invoice Financing is suitable for buyers who need to finance raw materials, goods and services. It ensures that you have sufficient cash to settle supplier invoices on the due date while providing sufficient time for you to sell and collect receipts to pay the bank. Stanbic IBTC Bank can finance up to 100% of the eligible invoice value.
- Invoice Financing (Seller): For sellers who trades on open account terms, Stanbic IBTC Bank offers Invoice Financing to raise short-term trade financing against commercial invoices and related transport documents. Invoice Financing is suitable for sellers who need to unlock cash held up with debtors. It ensures that you have sufficient cash to fund your ongoing operations without worrying about liquidity. Stanbic IBTC Bank can finance up to 100% of the eligible invoice value.
- Invoice Financing Pro-forma: With Stanbic IBTC Bank’s Proforma Invoice Financing, buyers and importers who trade on advance payment terms are able to raise short-term trade financing. Our solution facilitates both domestic and cross-border trade, with the payment of loan proceeds made directly to the suppliers of goods or services. The financing amount would not exceed the value of the Proforma Invoice and the loan tenor should align to the expected date of submission of shipping documents.
- Pre-shipment Financing: As sellers need to ready goods for shipment they may need to obtain working capital financing. Pre-shipment financing allows for sellers, based on a clear contract of sale, PO or an LC in their favour, to request financing from the bank. The amount of finance required by the seller typically aligns to the costs required to ready goods for delivery/shipment with the loan tenor aligned to the expected date of submission of shipping documents. The product can be used to facilitate both domestic and cross border trade.
- Receivable Discounting: Stanbic IBTC Bank discounts negotiable instruments in the form of promissory notes and bills of exchange (drafts), as well as non-negotiable instruments such as invoices. Our Receivables Discounting solution offers several, flexible structuring options to meet your needs. Our solutions are simple, efficient and transparent, and are provided through our online platform where suppliers transact with Stanbic IBTC Bank.
- Supplier Finance: Supplier Finance through Stanbic IBTC Bank is a buyer-centric, post-shipment trade finance solution that provides suppliers with liquidity without compromising a buyers’ accounts payable cycle. Stanbic IBTC Bank’s Supplier Finance solution is simple, efficient and transparent, and is provided on an online platform where the buyer and their suppliers transact with the bank.