Banking Services

viewing Import and Export Finance

IMPORT PRODUCTS


Pre Shipment Finance

For exporting customers our Bank is able to provide immediate financing to enable such customers to purchase produce locally, and prepare for shipment abroad. A good track record of export business in tea, tobacco, cotton, sugar, coffee and non-traditional crops is a pre-requisite to obtaining pre-shipment 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.


IMPORT PRODUCTS


Loans Against Trust Receipts

A loan against trust receipts enables our corporate customers to retain control of imported goods whilst undertaking to pay the sales' proceeds to the Bank. When corporate customers use this facility, the Bank will release the documents directly to the order of the customers, for them to take delivery of the goods and arrange clearance with the Department of Customs & Excise. Against the customer's undertaking to pay the Bank once the goods have been sold, the supplier overseas will be paid directly by the Bank subject to all exchange control formalities.


Shipping Guarantees

This is a type of guarantee issued by our Bank to a shipping company via an overseas bank, to enable the shipping company to clear goods, where there has been a delay in receiving the original negotiable bills of lading. Upon receipt of the shipping guarantee the shipping company releases the goods to the importer in Zambia without presentation of the relevant transport documents. This avoids extra demurrage and storage costs applicable to the importer, when clearance of goods is delayed. basis. Customers are expected to submit to the Bank the relevant bills of lading for the consignment, to allow the Bank to redeem the guarantee from the shipping company.


Loans Against Imports

Loans against imports are granted where the Bank holds the documents of title to goods which are warehoused to the order of the Bank.


How it works

On receipt of shipping documents, major importers can request our Bank to store goods in a nominated warehouse under our own name, until they require releasing them against final payments.