This service is available to connect short term funding needs for traders to enable them scale up their businesses, thereby meeting market demand and earning more income.
An overdraft is a great way to finance short-term cash flow and working capital needs and can also be accessed for Local Purchase Order to retail outlets, FMCG manufacturers, Quick Service Restaurants (QSR) etc.
- It is quick and easy to access.
- Interest is paid only on the amount utilized, not on the full amount at which the limit is set.
- Financing is available under the Conventional Banking and Non-Interest Banking platforms.
At SunTrust Bank we are committed to ensuring that prospective exporters realize their corporate objectives as well as their financing needs. This is achieved by deploying our corporate resources in highly professional manner to guarantee superior and sustainable returns to our customers, even as we comply with regulatory requirements.
This service provides pre-shipment and post-shipment finance for exporters of approved commodities, raw materials, semi-manufactured and finished products across all sectors to meet important export obligations.
Our products are designed for your present and future needs, with a team of experts who can deliver specialized services to your trade enterprise that enables optimized productivity, output and value for continued growth and success.
This product is used by a borrower to finance the fulfilment of a sales contract with a credit worthy off-taker. The terms of the purchase order financing agreement are very specific, requiring the borrower to use loan funds to procure/aggregate commodities, materials and/or services needed to deliver shipment of goods to the end-customer. This facility improves cash flow and provides working capital to start sourcing your export goods.
This is a finance product that avails working-capital to an exporter against a confirmed export order of non-prohibited items from a buyer backed by a Letter of Credit, Bills for Collection or Guarantee. This facility is offered prior to shipment in local currency (Naira) to enable exporter purchase/ aggregate goods, raw materials for manufacturing, warehousing and/ or other logistics arrangements.
Post -Shipment Finance
This finance is offered to an exporter or seller against a shipment that has already been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds.
Post-Shipment Rediscounting Facility
This is a short-term finance provided while awaiting receipts of export proceeds from shipments and/or encourage the provision of deferred payment arrangements by exporters to their counter-parties to enhance competitiveness.
SunTrust Bank offers longer-term export credit in support of export activities. This finance provides a mechanism that relieves export financing banks and export credit guarantors on their longer than expected export lending commitments in the event of commercial lending difficulties.
Export Bridging Facility
This short-term finance is provided to bridge working capital while awaiting inflow payments of export proceeds from shipments and/or encourage the provision of deferred payment arrangements by exporters to their counter-parties to enhance competitiveness.
Bills for Collections
Under Bills for collection, there is an underlying credit from the supplier for which a Bill of Exchange (an IOU) properly executed by the importer and endorsed by his bank is the underlying “Eligible Instrument”. Bills for Collection is a mode of payment used for the importation of visible goods to Nigeria.
It is an arrangement whereby the supplier has agreed to sell goods to a buyer and collect payment either at sight or after a period, usually 60 days, 90 days or 120 days as agreed by both parties on acceptance of the bill of exchange. Document is handled by Bank in accordance with instructions received from the seller.
- Used mostly by parties with long standing relationship or related entities
- Documents are released against accepted bill of exchange (payable at a future date)
- Payment is made before or after goods are shipped
- It is operated under guidelines clearly by the Uniform Rules for Collection, ICC Publication No. 522
- Suppliers’ finance for up to 270 days (from bill of lading date) allowed by local regulations
- It is straight forward and not as complicated as letters of credit
- Cheaper to use by importers
- Foreign exchange can be procured from the official market
Letter Of Credit
SunTrust Bank issues import letters of credit on behalf of customers to beneficiaries anywhere in the world by utilizing lines availed by highly reputed correspondent banks. These banks are positioned in strategic business locations all over the world.Features:-
- Approved trade finance facility is required if there is no cash collateral provided by importer.
- Credit worthiness of the bank is substituted for that of the importer.
- It allows for advance payment of up to 25% subject to documentation requirement.
- Payment is made after presentation of compliant documents by the exporter to the bank nominated in the LC.
- It is operated under guidelines clearly by the Uniform Customs and Practice, UCP Publication No. 600.
- In most cases the Importer avoids partial pre-payments or deposit.
- It helps to reduce the risk of non-performance of the exporter. If the exporter does not ship the goods, they will not get paid.
- Importer will receive timely delivery of the goods because the LC terms dictate latest acceptable shipment date.
- Foreign exchange can be procured from the official market (subject to certain restrictions)