What We Do

Provision of Trade Financing Facilities: SBLC, DLC, Usance LC
 

The Problem:

If you wish to import commodities or goods, you typically must provide your Supplier/Seller with a trade finance facility, typically an SBLC or a DLC. This is the only way since you, the Buyer/Importer, wish to receive the goods BEFORE you make payment, and the Supplier wishes to receive payment BEFORE they release the goods. That’s the conundrum, hence the need for a trade finance facility.

Now, the Supplier will typically request that this facility is issued by an international bank. If you now go to your local bank to do this using one of their international corresponding banks, they will require you to post 100% cash backing before they issue the SBLC or DLC.

So, you, the Buyer/Importer, will now face your first major challenge, that is, how to find 100% of the cash before you receive the goods and indeed begin selling them.

The Solution:

We are stepping in to intermediate the trade. We will provide the trade facility to your supplier in exchange for a fee from the Buyer. We will also provide an indemnity to the credit provider allowing them by-pass the lengthy client onboarding process and client credit review.

We are able to do this because we have access to an international network of Credit Managers who in total control over $500m of cash deposits. These Credit Managers rely on us to do our due diligence on the Client and the trade and make formal recommendations. Our client and transactional due diligence are conducted by our exclusive agents in Africa. 

About the Facility:

• What it is and What it is not:   

                         What it is: It’s a PAYMENT GUARANTEE back-stop.

                         What it is not: It is not a MEANS or METHOD OF PAYMENT.

• Amounts:

                         Minimum: :750k

                         Maximum: :10m

• Issuing Banks: Major Asian Trade Finance Banks

• Confirming Bank: Major European Banks

• Fees:

                         Arrangement Fee: 3% (1.5% on Engagement and 1.5% on Issuance).

                         Facility Fee: 10-13% (paid on Issuance)

• Tenure: 12 Months

Issuance Process:

Once we have concluded a quick DD on the Client and the Trade process, we will require the following:

1. Name of the Supplier’s bank (this will allow us to select an appropriate International trade banking counterparty for the Issuance).

2. Provide a draft SBLC/DLC for the supplier and/or their bankers to approve.

3. Issue, by SWIFT, the SBLC/LC.

Process can take as little as 7-10 days if all matters are addressed in a timely manner.

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