Last updated on August 5th, 2023 at 09:14 pm
For Nigerians who engage in international trade: importation and exportation business, access to finance could be challenging, but this has specifically been solved by Stanbic IBTC bank.
Called import and export finance, the financial support is aimed at solving some of the financial constraints Nigerian importers and exporters face in their trade.
6 Benefits of Stanbic IBTC Import and Export Financing:
1) It’s designed to support import and export trades and transactions.
2) It is a secured mode of payment in international trade.
3) You will access to 13 currencies
4) The bank ensures that both parties fulfill the agreement of trade, as such there is no issue of non-payment and non-delivery.
5) It is secured since the bank is globally recognised as a legitimate bank that carries out operations in Nigeria and some African countries among others.
6) Above all, it provides a fantastic financing structure for importers and exporters.
This financing is subdivided into two categories:
- Import (Outward Letter of Credit)
- Export (Inward Letter of Credit)
The two categories are guided by terms and conditions for users to enjoy the full benefit of international trade financing.
The conditions below must be met by an importer:
- If a credit is up to 180 days, 1percent of face value is charged
- If a credit is up to 270 days, 1.25percent of face value is charged
- For 360 days, 1.5percent on credit is charged.
- If a letter of credit is extended for a period of 12 months from the establishment or re-establishment, a commission of one percent is applied
- A fee of NGN5,000 will be paid on extensions.
- A service charge of NGN2000 applies to any other amendments
- Charges of N3/mille per month apply where the bill is less than 12 months
- When a bill exceeds 12 months, charges of NGN5/mille per month apply.
- If you failed to accompany your risk assessment report alongside the FX form M, you will be charged NGN2,500
For an exporter of oil and non-oil products from Nigeria, it means he’ll be the receiver of funds for the goods he has supplied to a foreign buyer, financially, this is called “Inward Letter of Credit”
Below is the financial commitment you need to meet and terms and conditions you must abide by to enjoy the financing:
- Payment of NGN5,000 for the processing and registration of Nigerian Export form.
- Payment of NGN2,000 to verify the authenticity of the credit.
- Payment of N0.5 per mille subject to USD25 or its equivalent to rewriting the credit
- For confirmation of commission, 1% subject to a minimum of N5 000 is paid.
- 1% is charged on the negotiation of document commission, plus interest if applicable at local rate
- You will pay 0.5% of face value where all or part of the credit is transferred.
Here is how to obtain finance at Stanbic IBTC for your international trade financing in Nigeria:
1) You must have SME or business account with Stanbic IBTC bank
2) Your company must be registered, most times incorporated company is preferable
3) You mustn’t have an unsettled loan
4) To begin this process, visit a Stanbic IBTC Bank branch near you
There are times you have orders from your foreign buyer and you’re incapacitated by funds due to some logistics, that’s where the Stanbic IBTC Import and Export Loan comes in.
Featured Image credit:
- Photo By Chuttersnap On Unsplash