Let’s help meet your local and international trade objectives with our range of trade and working capital solutions. We offer trade products that will help you manage risks, negotiate credit terms, reduce pressure on your cash flow and trade confidently and efficiently. Our solutions include Documentary Collections and Letter of Credit.
Trade with confidence
Our Documentary Collections provide your trading partners assurance that you will meet your payment obligations.
Your cash flow is assured
You’re guaranteed of more accurate cash flow predictions.
Improved credit terms
You can negotiate improved credit terms with your buyer or supplier for both importing and exporting.
Business Integrator Online
Aimed at the medium, large and corporate business customer, Absa’s Business Integrator Online is the perfect web-based banking application for your business.
View our solutions
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Export Documentary Collections
Benefits
- It’s a simple operation
- It improves cash flow
- Customers using an Export Collection where the bill has been guaranteed may request us to discount the bill before due date
- It is convenient – has no impact on the client’s credit facilities
- Reduces the risk of losing the title to the goods before receiving payment for goods shipped on a bill of lading (a detailed list/receipt of goods being exported)
Features
- Export Documentary Collection operates as follows:
- The exporter sends documents that allow access to the goods being imported (i.e. a bill of lading, certificate of origin, invoice) to their bank, along with a bill of exchange requesting payment according to the agreed terms
- Payment is normally requested in one of two ways:
- Immediately on presentation of the collection to the importing customer ('sight payment'), or
- On an agreed future date ('term payment')
- In the case of term payments, importing customers will be required to endorse the bill of exchange (ie. sign it, usually on the back) to indicate their acceptance of it before we release to them the documents allowing access to the goods.
- The exporter sends documents that allow access to the goods being imported (i.e. a bill of lading, certificate of origin, invoice) to their bank, along with a bill of exchange requesting payment according to the agreed terms
- Our Export Documentary Collections are governed by International Chamber of
Commerce rules; this means that aspects such as responsibilities and liabilities are clearly defined and standardised worldwide - If the correspondent bank (collecting bank) has guaranteed payment of the bill of exchange we can discount the bill of exchange without affecting our client’s facilities. This allows them to improve their cash flow by receiving funds earlier than the due date. In this case, our risk is marked against the collecting bank.
- Payments of any value may be collected in any freely traded currency
- Payment can be received immediately on presentation of the documents to the buyer or on an agreed future date
- Choice of delivery channels to use when originating the collection.
How to get it
Contact our Transactional Banking Customer Service Centre on
0860 227 232Or email
absaeb@absa.co.za - It’s a simple operation
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Import Documentary Collections
An Import Documentary Collection offers you a safe, secure method of sourcing products globally to help you increase your business' opportunities while providing
some form of security for you and your trading partner.There are two types of Import Documentary Collection documents.
These are as follows:Documents against acceptance
Documents against acceptance (also known as D/A) are documents released to the buyer against acceptance of a bill of exchange payable or an undertaking to pay at a future date, for example, 30 or 60 days from bill of lading date. If documents are released against acceptance, the buyer is able to inspect the goods before payment takes place.
Documents against payment
Documents against payment (also known as D/P) are documents released to the buyer against payment. This method is more secure for the exporter than documents against acceptance.
Benefits
- It is a simple and efficient tool for settling trade debts
- It improves cash flow for customers who are able to negotiate credit terms
- Payments of any value may be made in any freely traded currency
- Payment can be made immediately on presentation of the documents or on an agreed future date.
Features
Here’s how our Import Documentary Collections work:
- The exporter sends documents that allow access to the goods being imported (i.e. a bill of lading, certificate of origin, invoice, etc.) to their bank, along with a bill of exchange requesting payment according to the agreed terms
- Payment is normally requested in one of two ways: immediately on presentation of the collection to the importing customer ('sight payment') or on an agreed future date ('term payment')
- In the case of term payments, importing customers will be required to endorse the bill of exchange (ie. sign it, usually on the back) to indicate their acceptance of it before we release to them the documents allowing access to the goods.
How to get it
Contact our Transactional Banking Customer Service Centre on
0860 227 232Or email
absaeb@absa.co.za - It is a simple and efficient tool for settling trade debts
Strengthen relationships
We offer a comprehensive range of services to support your international trading.
Lessen trading risks
Use our Letters of Credit to mitigate the risks of trading overseas.
Trading open to negotiation
You’re able to negotiate with your supplier the terms of trade, including specific delivery dates of goods from your supplier.
Business Integrator Online
Aimed at the medium, large and corporate business customer, Absa’s Business Integrator Online is the perfect web-based banking application for your business.
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Export Documentary Letter of Credit
Our Export Documentary Letter of Credit cover your trade risk by giving you a guarantee that we’ll pay you once you’ve provided us with all the required trading documents with your buyer.
Benefits
The Export Documentary Letter of Credit offers you:
- a comprehensive range of international trade services to support your overseas trading
- 'gateways' to a whole range of other international products and services such as foreign exchange products and risk mitigation
- you can secure a specific payment date
Features
- Payment is only made to exporters when they present documents that comply exactly with the terms and conditions of the Documentary Letter of Credit
- The exporter may be able to discount deferred Letter of Credit, thus receiving their payment immediately upon presentation of complying documents
- No impact on the exporter’s credit facility. Even if we discount the Letter of Credit, the risk will be on the issuing bank
- Letters of Credit can be issued for any value and in any freely traded currency (subject to appropriate facilities having been marked for the customer)
- Sight or term payment options
- Payment can be received immediately on presentation of compliant documents ('sight' payment) or on a fixed or determinable future date ('term' payment)
How to get it
Contact our Transactional Banking Customer Service Centre on
0860 227 232
or Email
absaeb@absa.co.za - a comprehensive range of international trade services to support your overseas trading
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Import Documentary Letter of Credit
Our Import Documentary Letters of Credit provides you with valuable risk mitigation tools to assist with your international trade transactions.
By using an Import Documentary Letter of Credit, you can mitigate the risks of your supplier shipping incorrect or defective goods.
Benefits
- Our Import Documentary Letters of Credit provide you with valuable risk mitigation tools to assist with your international trade transactions.
- By using an Import Documentary Letter of Credit, you can mitigate the risks of your supplier shipping incorrect or defective goods
- Import Documentary Letter of Credit are governed by International Chamber of Commerce rules which means responsibilities, liabilities are clearly defined and standardised worldwide
- We offer a comprehensive range of international trade services which allow you to strengthen relationships with your overseas suppliers
- Trade services products, such as letters of credit and collections, often act as 'gateways' to a whole range of other international products and services such as foreign exchange products and risk mitigation. Income benefits can be extensive.
- As an importer you’re assured that if the terms of Letter of Credit are complied with, you’ll receive the correct goods on time
Features
- Customers can specify the documents against which payment will be made
- Suppliers receive payment only if they present documents which comply exactly with the terms set out in the letter of credit
- While a letter of credit cannot guarantee the quality of the goods, it can call for an independent third party to inspect the goods prior to shipment and provide documentation detailing the inspection findings. This is an important advantage when buying from new suppliers
- We can offer guidance on the documents to ask for, and how to word the terms of a letter of credit
- Our letters of credit are always irrevocable – they cannot be amended or cancelled without the agreement of all the parties
- The bargaining position of customers is enhanced - customers may be able to negotiate longer credit periods when they provide letters of credit
- They may also be able to reduce their costs by using the benefits to the supplier as a lever in negotiations
- We can establish the Letter of Credit at sight (enabling beneficiary to get paid upon presentation of complying documents), and refinance the importer for a further period (i.e. allowing him to pay for his imports at a future date and also to sell the goods before he has to pay). This improves our client’s cash flow situation, and also allows him to negotiate better pricing with the exporter
- Suppliers may also be persuaded to meet some or all of the cost of the letter of credit
- Customers can gain status with their suppliers because banks only issue letters of credit on behalf of customers they consider creditworthy
- Customers' competitive position may also be enhanced; they may be able to win deals from suppliers who insist on payment by letter of credit.
How to get it
Contact our Transactional Banking Customer Service Centre on
0860 227 232
or Email
absaeb@absa.co.za - Our Import Documentary Letters of Credit provide you with valuable risk mitigation tools to assist with your international trade transactions.
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Need more help?
Let one of our consultants assist you.
Call our Transactional Banking Customer Service Center on:
0860 227 232
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