Corporate and Investment Banking. Open Account Trade Finance Solutions

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1 Corporate and Investment Banking Open Account Trade Finance Solutions

2 Open Account Trade Finance Solutions Standard Bank your trade partner in, for and across Africa Open Account Trade Finance Solutions In today s business environment, buyers and sellers often trade on credit terms. Achieving effective and flexible cash flows is essential to the success of your company when trading. With in-depth knowledge of various sectors and industries across the world of trade, Standard Bank understands that each company is different. We have a suite of products that are designed to meet the varying needs of your business. For instance: Your sales are growing and you need to secure cash flows to support business growth. Much of your cash is tied up in your sales ledger, and this money should be working harder for you. You are exporting and want to explore the convenience and advantage of offering open account terms. 3

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4 Open Account Trade Finance Solutions From speeding up your cash flows or collecting payments on your outstanding invoices, Standard Bank s Open Account Trade Finance Solutions can help you succeed. Our solutions aim to support your business with: Working capital improve your cash flows by unlocking cash from your receivables/payables and get access to cash to settle obligations. Productivity secure your raw materials, stock or purchases quickly to ensure you can better service your customers through an on-going conversion cycle. Profitability improve your payment reputation with your sellers to enable you to negotiate better payment terms and possibly receive early payment discounts. Liquidity backed by a flexible source of working capital, businesses can typically respond quicker to new and exciting market opportunities. Funding access more competitive funding through our open account solutions. Standard Bank aims to offer various solutions that can be tailored to meet your needs. These include: Supplier Finance This buyer-centric, post-shipment trade finance solution provides your suppliers with liquidity without compromising your accounts payable cycle. Invoice Financing You can raise short-term trade financing by submitting commercial invoices and associated transport documents. We advance up to 100% of your commercial invoice value. Buyer financing process Ongoing contract of purchase and sale between the buyer and seller. Buyer (Obligor) Seller 1 Buyer places purchase order. 2 Proforma invoice issued by seller. 3 Goods are shipped to the buyer. 4 Present signed, accepted invoices, related transport documents and official documents 5 Payment for full value of shipment is made by Standard Bank on behalf of the buyer 6 At maturity date, payment is made by the buyer to Standard Bank for the full loan advance, (if applicable) along with financing request to Standard Bank. on stated payment date. plus the financing charge in respect of the advance. 5 Receivables Discounting As a seller, you can utilise our Receivables Discounting program to discount invoices from your eligible buyers. You receive cash up front by discounting your receivables, which improves your working capital and helps you to manage your Days Sales Outstanding. 5

5 Seller financing process Ongoing contract of purchase and sale between the seller and buyer. Seller (Obligor) Buyer 1 Buyer places purchase order. 2 Proforma invoice issued by seller. 3 Goods are shipped to the buyer. 4 Commercial 5 invoices, related transport documents and official documents are presented to Standard Bank, along with financing request Payment for full value of shipment is made by Standard Bank on behalf of the buyer on stated payment date. 6 At maturity date, payment is made by the buyer to Standard Bank to settle the loan advanced. 6 Why Standard Bank The Standard Bank Group is a leading African financial services group with universal banking capabilities. We operate in 20 countries in Africa, including South Africa, as well as in other key markets globally. We are invested in Africa, our home, a real economy bank, our insight and experience helps unlock opportunities and aims to mitigate risk for our broad range of clients. Our differentiator is our long-term commitment to Africa, underpinned by a heritage of over 150 years on the continent. Standard Bank offers a comprehensive product range of trade and cash management products that aim to ensure your working capital requirements are met. Along with our end-to-end solutions, we may offer your business access to market insights to make the most of opportunities in African trade. 6

6 Open Account Trade Finance Solutions With up-to-date technology and a dedicated trade team, we aim to service your needs through robust channels and our extensive correspondent networks. Due to regional and in-country regulations, differences exist in our offerings across The Standard Bank Group. Contact your Standard Bank Relationship Team to to help navigate your complex working capital environment and provide the best solutions for your needs. Contact us Contact us for information on international trade services in, for and across Africa. For further information on any of our products and services, contact: Your nearest Standard Bank International Trade Services office Telephone: 0860iTrade/ Visit our website at (select Corporate and Institutions, click on Products and Services, and click on International Trade Services under Transactional Services). 7

7 Notes 8 Authorised financial services and registered credit provider (NCRCP15) The Standard Bank of South Africa Limited (Registered Bank) Reg. No. 1962/000738/06 SBSA /15

8 Disclaimer This document has been prepared solely for information purposes by The Standard Bank of South Africa Limited, acting through its Corporate and Investment Bank Division ( SBSA ). Any indicative terms provided to you are provided for your information and do not constitute an offer, a solicitation of an offer, invitation to acquire any security or to enter into any agreement, or any advice or recommendation to conclude any transaction (whether on the indicative terms or otherwise). Any information, indicative price quotations, disclosure materials or analyses provided to you have been prepared on assumptions and parameters that reflect good faith determinations by us or that have been expressly specified by you and do not constitute advice by us and it should not be relied upon as such. The information, assumptions and parameters used are not the only ones that might reasonably have been selected and therefore no guarantee is given as to the accuracy, completeness, or reasonableness of any such information, quotations, disclosure or analyses. No representation or warranty is made that any indicative performance or return indicated will be achieved in the future. This document is not an official confirmation of terms, and any transaction that may be concluded pursuant to this document shall be in terms of and confirmed by the signing of appropriate documentation, on terms to be agreed between the parties. The information in the document is also subject to change without notice. SBSA, or an associated company, may have effected or may effect transactions for its own account in any investment outlined in the document or any investment related to such an investment. Prospective investors should obtain independent advice in respect of any product detailed in this document, as SBSA provides no investment, tax or legal advice and makes no representation or warranty about the suitability of a product for a particular client or circumstance. Transactions described in this material may give rise to substantial risk and are not suitable for all investors. SBSA will only provide investment advice if specifically agreed to by SBSA in appropriate documentation, signed by SBSA. This information is to be used at your own risks, and SBSA makes no representation with regards to the correctness of the information herein.

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