Financing product frees up resources for forwarders ‘Not competing with banks’

ANGLO AFRICAN Trading (AAT), the Stellenbosch-based provider of logistics finance, has been much in the news recently due to its offer to purchase 11% of the shares in KWV. But this is simply evidence of the diversified nature of the company, and the way in which it has broadened its horizons since it was established in 1999.
Of particular interest is the specialised financing product offered by AAT to logistics service providers. Developed as a result of AAT’s exposure to export and import trading, this product offers forwarders a second-tier opportunity to finance their disbursements without impacting on their existing banking relationships, says IT director Hendrik de Waal. “This enables them to free up resources that would otherwise have been tied up in financing debtors, and allows them more freedom to expand and diversify their businesses.”
The initial concept was to provide forwarders with a treasury function that would enable them to arrange payment to carriers in foreign currency while at the same time providing them with an element of credit. “In today’s scenario of a relatively strong rand and depressed export volumes, it is critical that foreign exchange exposure and disbursements be managed professionally,” said De Waal. “The AAT service offers a cost-effective way of achieving this, and positions the forwarder to take advantage of any increase in volumes as the exchange rate picture alters.
“The intention is not to compete with the forwarders’ banks, but to supply a value-added supplementary service. Backed by a sophisticated Oracle-based computer system, developed in collaboration with Isis, the system ensures that payments of freight are made to carriers promptly and accurately, and that full records are made available to the forwarder. “