A new Finance Model for Africa 1200

And we are active in Africa! Here is a new Trade Finance Model with focus on Africa. Through this model, we can provide flexible transactional trade finance for reputable sellers, traders or buyers, with regular transaction flow, either into or out of our focus on sub-Saharan Africa.

For qualified clients and selective locations in Africa, the FRL Group, its investors and selective the African and international banks and financial institutions we partner with, now provide flexible, secured, structured trade finance solutions. This new Trade Finance Model is focussed on Africa is transactions and the aim is to dramatically increase the availability of Trade Finance to inward and outward trade to selected African countries, with a particular focus on Sub-Saharan Africa.

Our methodology requires no changes to standard trade finance bank processes and procedures. We take great care of applying International Chamber of Commerce (ICC) best practice tools and techniques to the benefit of both buyers and sellers when structuring our Trade Finance solution.

The FRL Group with its investors and African and international banking relations substantially enhances clients’ working capital profile, enabling them to scale, whilst in full collaboration with existing banking relationships and without impeding on the bank’s collateral.

Our “New Trade Finance Model with focus on Africa” provides flexible transactional trade finance for reputable sellers, traders or buyers with regular transaction flow. We assess each opportunity carefully and structure our facilities to match the transaction timeline, profitability and perceived risk profile.

The Basic Criteria
Goods flow from non-sanctioned countries
You deal in finished goods
The goods are pre-sold
Gross Profit Margin of the goods sold exceeds 10%
Client can afford the facility fee for the duration of the loan
Client uses the facility to execute purchases & sales and not for general working capital
A client will have to have the ability to participate in the transaction with at least 20%

The Basic Features
The funding facility is transaction focused
The funding facility is a short term position of 30-180 days
The funding facility position is self-liquidating

The Financial Product Facility
Off-balance sheet stand-alone transactional facilities
Back-to-back trade facilities
Co-financing and/ or participating with other institutions
Trade receivable discounting
Supplier cash payments
Documentary Collections
Pre-Export Finance
Pre-Shipment Finance
Post Shipment Finance
Import Finance with Supplier Payments
Stock / Storage Finance

In this “New Trade Finance Model with focus on Africa” each opportunity is assessed carefully, and facilities are structured to be self-liquidating matching the transaction timeline (up to 180 days), profitability and perceived risk profile.

We provide bespoke structured trade finance solutions, supporting African trade through flexible, secured, pre- and post-shipment trade finance loans. Download the presentation here | See more details about the process to establish the facility through our banks

Trade Finance Model with Focus on Africa

Available for these Countries and Locations Botswana, Ethiopia, Ghana, Kenya, Malawi, Mozambique, Namibia, Nigeria, Rwanda, South Africa, Tanzania, Uganda, Zambia, Zimbabwe