A more holistic approach to logistics has blurred the boundaries between various disciplines in the freight industry. Trade finance is no longer the sole preserve of commercial banks. Financial institutions have linked with forwarding agents, insurance companies are adding financial
services, and innovative solutions are providing shippers with flexible options.
FTW takes a closer look...
Maurice Van Bergen... it was never our intention to compete head-on with the banks
Joe Rivkind
Sasfin provides creative assessment to find innovative solutions
DEVELOPMENTS WITHIN the banking industry are helping financial services group Sasfin to further develop its lucrative niche in the small to medium-sized trade finance sector.
General manager trade finance Joe Rivkind believes that commercial banks are sending out a very clear message to smaller companies. Although they have ventured into trade finance to some degree, you now see a reversal of their willingness to deal with small to medium-sized companies - those with facilities ranging up to R2-m.
At first it was the bank manager who developed a relationship with the client. This was transferred to the commercial suites, and now it's gone one step further with the credit departments actually dictating the terms so that personal relationships have fallen by the wayside.
At Sasfin we look at structuring a facility to suit the client's needs in a more creative way.
With a prudential limit of R10m the company is not looking to attack major commercial bank clients.
We're not a commercial bank and it was never our intention to compete head-on with the banks, says assistant general manager trade finance, Maurice van Bergen. A customer who has the opportunity to walk into a bank and get the facility he wants, should stay there.
We come in where the financial position of the client needs more creative assessment. We are more open-minded and are prepared to look beyond securities to structure an innovative and flexible solution.
There's a strong connection between associate Premier Freight and the trade finance division, says Van Bergen.
We finance a deal, they can control the goods and it remains under a single roof. And here the convenience factor seems to prevail above reservations of putting all eggs in one basket.
In fact, says Rivkind, cross-selling within the group is paying enormous growth dividends.
But when it comes
to growth, the state of the local and international economies will dictate.
On the trade finance side one of the major issues is the provision of an import facility, and if the economy is down imports are down.
While the outlook for South Africa appears to be positive, Rivkind warns that we are at the mercy of outside circumstances.
When the US sneezes we catch a cold and they are in for a torrid time. Similarly Europe is also slowing down, and these are all external issues which will affect local performance.
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