To maintain a financial health of your business it is essential that you have enough cash flow to meet your short-term operating costs and debt obligations. This is called working capital. To help you ensure that you maintain the healthy cash flow, we have a number of working capital solutions available to you:

Our import finance services make trading safer and simpler. Plus we help facilitate transactions so that you enjoy reduced trading risk and receive any payments on time.

  • Import letters of credit

    • Your overseas supplier may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction.
    • Our network of branches and correspondent banks enables us to issue letters of credit to beneficiaries in most countries worldwide and in all freely convertible currencies.
    • Our policy is to ensure the beneficiary's bankers receive our letters of credit within 24 hours of our receipt of your application.

  • Revolving letters of credit

    • Revolving letters of credit involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific period has lapsed. Depending on your needs, we will undertake to reinstate these instruments automatically and without the requirement of any further amendment from you.
    • The number of times within which this can take place will be agreed upon and specified in the credit document.

  • Standby letters of credit

    • Payments under regular letters of credit are generated by the performance of the exporter under specified trade contract; payments under standby letters of credit are generated by the default of the importer under a specific trade contract. Standby letters of credit are irrevocable and payable on demand.
    • Upon your request as an importer, we can provide this form of conditional undertaking on your behalf to the beneficiary.
    • Should you fail to make settlement, we will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit agreement.

  • Import letter – credit refinancing

    • This is used in instances where certain unfavourable market conditions exist on the due payment date and for one reason or another, the applicant is not willing to make settlement.
    • We can arrange to make settlement of both sight and by using the import letters of credit on your behalf and refinance you locally up to 180 days after payment date, depending on your requirements.
    • This can be applied in various instances and ultimately provides you with flexibility to manage your cash flow.

  • Import documentary collections

    Under documentary collections, your overseas suppliers present appropriate documentation to their bankers, which are then forwarded to us to facilitate collection on their behalf. We ensure that you are advised promptly and that their instructions are carried out exactly as per their requirements. Different forms of financing can be arranged, based on the presentation of appropriate documentation.    

Planning on exporting? We are with you all the way before and after shipment with tailor-made export finance solutions to help fulfil your trading obligations.

  • Export letters of credit

    Export letters of credit are advised within 24 hours of receipt. Upon request, our confirmation may also be added. Confirmation eliminates the risk of default by the beneficiary to the bank and can facilitate access to a wide variety of finance solutions, both before and after actual shipment has taken place.    

  • Post-shipment financing

    Post shipment finance provides cheaper access to funds after shipment but before maturity. This can be done through negotiation/discounting and can therefore enhance your cash-flow position thus further enabling you to focus on your core business. To facilitate this, the fulfilment of all the terms and conditions under the credit is required.    

How does it work?

We provide bid bonds, performance guarantees, custom bonds, advance payments guarantees, retention money guarantees, shipping guarantees and maintenance guarantees applicable in different circumstances. For further information about our trade solutions, please contact your Absa relationship manager or our Commercial Banking Trade Finance Department on +260 211 366150.

Benefits
  • Tender for business that you might have previously considered out of reach.Tender for business that you might have previously considered out of reach
  • Improve the terms of your tenders and negotiate better terms on contracts
  • Reduce the risk that comes with international deals and transactions
How does it work? 
  • Different types of financial and commercial documents are exchanged during trade transactions that provide evidence of a transaction, as well as acknowledgement of debt. This specialised form of trade financing can be available either with or without recourse, depending on the credit assessment of both parties to the transaction.
  • For further information about our trade solutions, please contact your Absa relationship manager or our Commercial Banking Trade Finance Department on +260 211 366150.
Benefits
  • Enhance your cash-flow position
  • Benefit from competitive pricing
  • Bolster your trading status
Need more help?

Call us on:
+260 (211) 366100 (available Monday to Friday from 08:00-16:45)
5950 (Toll free)

Email us:
customerservice.zm@absa.africa