What We Offer

Simply put, trade finance enables a business to acquire products that it needs to conduct operations. Typically in a wholesale/distribution business, this would be stock, and in a manufacturing concern this would be raw materials. For example, an importer and distributor of brushware would use a trade finance facility to import mops and brooms.

Why consider a trade finance facility?

There are many reasons, some obvious, some less so.  In no particular order of importance:

  1. South African banks, which are in most cases the primary source of working capital finance for small and medium sized business, adopt a conservative approach to granting credit, which is mostly security based.  This is not a criticism of the banking industry’s approach, but it can and does provide a growth constraint.
  2. A trade finance facility extended by a company which specialises in this area does not interfere with existing bank facilities.
  3. The facility can be used for both local and international transactions.  Where a business sources most of its purchases locally, typically on a 30 / 60 day net payment term, a trade finance facility can be used to pay the supplier in cash to obtain a discount and the credit term can be extended by the trade financier.
  4. In the case of international transactions, Anglo Cape Confirming has many years experience of opening letters of credit where these are required.  A growing tend is for overseas suppliers to demand the whole or a portion of the purchase price to be paid in advance and again this is an aspect that we are familiar with and equipped to undertake.

Trade finance is provided through

Letters of Credit

Guarantees for payment to local and overseas suppliers

Direct payments to suppliers

Provision of foreign exchange

Anglo Cape Confirming has been providing trade finance since 1994 in Cape Town.