Trade and Freight Solution

Our Trade and Freight Solution is specifically designed to assist our Customers with funding for the local buying or importation of inventory / raw materials, the movement, logistics and clearing of the goods into South Africa and the overall management of any foreign exchange risk attached to the transaction to mitigate any gross profit margin deterioration.

The Facility offers our Customer access to quick and flexible capital to facilitate the procurement of inventory and raw materials for trading or production. We believe our offering is unique as we are not only providing our Customer with the required loan capital, but we are also engaged and assist our Customer through every step of the procurement value chain to ensure we manage the timing, movement, price, margin and risk of the underlying product.

Our objective is to realise value for our Customer by managing the foreign exchange risk with access to cheaper and better-timed currency buying and cheaper and more effective Freight and Clearing charges which will offset the costs of finance. This will result for our Customer growth in sales, lower landed cost of product and wider overall gross profit margins.

Perfect for a business looking for:

  • Capital to procure inventory and raw materials for trading or production
  • Early settlement discount on supplier / creditor payments
  • Extended payment terms over and above your traditional supplier / creditor payment terms
  • End-to-end funding solution for the procurement value chain
  • Capital to grow sales, but also to reduce costs and widen gross profit margins
  • Value against inventory balances on your balance sheet
  • Risk management against foreign exchange currency fluctuations

How it works:

Facility is secured by a cession and pledge over stock

Our facility can offer extended payment terms up to 210 days from invoice

We pay the supplier / creditor invoices on our Customer’s behalf

We will load, freight, clear and deliver the products to our Customer’s business premises or designated warehouses

We procure the foreign currency at cheaper rates through your current Bank network

We manage the foreign currency risk with various derivative techniques subject to our Customer’s risk appetite

Is Trade & Freight the funding solution your business needs?