South Africa
Have questions on trade finance?

Frequently Asked Questions

Can I only use trade finance for imports and exports?

No. Trade finance can also be used for local trade, which includes the buying and selling of goods.

Will a trade finance facility be cheaper than an overdraft?

Pricing is risk based, however, the interest on a trade finance loan is often lower than on an overdraft.

Can I extend my trade finance loan?

As a trade finance loan is fixed for the term that you choose when your supplier is paid, you will need to make prior arrangements with the Bank to extend the maturity date of your loan. You can settle the interest or roll over the interest plus principle amount for a further term on maturity date, subject to prior approval by the Bank..

Can I settle my trade finance loan early?

Yes. You will only be charged the interest up to settlement, however, an early breakage charge may be levied.

What is an early breakage fee?

As trade finance loans are fixed for the tenor you choose when your supplier is paid, an early breakage may be charged for early settlement, depending on how close to maturity the loan is on date of settlement.

Can I choose the term of my trade finance loan?

Yes, up to the maximum tenor as agreed between you and the Bank, which will be stipulated in your Trade Agreement.

Will I receive a monthly trade finance loan report?

You will receive and advise on the establishment of your loan. On request, the Bank can send you a trade finance loan report.

What happens when my trade finance loan matures?

The Bank will send you a system generated reminder 7 days prior to maturity date so you can arrange for settlement with the Bank.

What fees are charged on my trade finance loan?

An initiation fee is negotiated with you when the trade facility is agreed to by the Bank, thereafter an annual review fee will apply.

What documents do I need to submit when I want the Bank to pay my supplier?

The signed finance request form, the relevant invoice(s) together with a schedule of these invoices, as well as any other documents as specified by the Bank.

How long does the Bank take to make payments to my suppliers?

Your supplier will be paid up to 3 working days after submission of your finance request.

Will I receive a payment confirmation?

The Bank will provide you with a copy of the SWIFT message as payment confirmation for all payments made to other banks.