FNB addresses cross border payment risks

Several e-commerce initiatives launched AS MORE and more high-value goods move into the South African Customs Union, the thorny issue of payment risk across national borders becomes increasingly relevant. FNB Corporate Trade Service believes that one of its biggest contributions to trade is the mitigation of these underlying risks, as well as the issuance of guarantees covering performance obligations. “These guarantees can be used to recover costs if there is a breach of contract, providing a tactical advantage to the importer by obtaining control of the money while legal proceedings under the sales contract are in progress,” an FNB spokesman told FTW. “The emphasis is on providing clients with tailor-made solutions to meet their unique requirements. Turnaround time and accuracy are invaluable to our clients, as is access to knowledgeable staff for quick resolution of queries. This is ensured by straight-through-processing (STP) of each transaction by accountable trade specialists in the back office.” A team of trade specialists assists clients with structuring solutions around letters of credit, documentary collection and guarantees, providing innovative solutions to clients requiring import and export financing facilities. With the paper intensive practices of traditional import/export operations disappearing, e-commerce is playing an increasingly important role in streamlining processing, the spokesman said, with considerable resources being devoted to such initiatives. “We have established systems that use the most technologically advanced resources to enable transactions to take place in a manner that best suits clients.” Clients require increasingly sophisticated structured deals and their ability to effectively service and manage the needs of their offshore operations is of utmost concern to FNB, the spokesman said. “This concern is also driven by the knowledge that many clients are seeking more innovative and secure ways in which to undertake cross-border business.” E-commerce options l Applications can be completed and submitted from a desktop via the company’s electronic FirstTrade system installed at a client’s office. l Applications can be completed and submitted online on its website. l Application forms can be submitted manually at any of FNB’s Trade Services’ offices or at any FNB branch.