finance. This finance is extended by way of an overdraft or short term loan, and may be extended in local currency (Kwacha) or foreign currency, depend­ing on availability of funds in the market.

Export Bills Negotiation

Companies who export goods outside Zambia by way of inward confirmed irrevocable letters of credit may obtain an advance of up to 90% of the value of the export letter of credit - from the bank.

Once the relative export documents under the export letter of credit are submitted to the Bank, the Bank will negotiate the documents and accompanying bill of exchange (draft) drawn at either sight or usance.

It is imperative that all parties to the Letter of Credit be of good standing. Negotiation is on a strict recourse basis.

Export Discount Facility

Exporting customers, who sell their goods on open account but, against firm orders from their buyers overseas, can obtain financing from our Bank. Once the Bank is satisfied with the credit standing of your buyers overseas, your bills of exchange, and supporting documents covering your exports will be discounted at our counters. This takes the form of purchasing a sight bill or term Bill of Exchange for less than its face value (usually 90% of the face value of the bill). This form of financing improves our customers' cash flow by providing immediate funding against export documentary collection.

Advances Against Outward Collections

This is similar to the export discount facility. The difference is that in this case an advance against an outward collection represents only a proportion of the bill amount. The Bank is not a party to the bill.