Taking a holistic approach
FINDING TAILORED solutions to individual needs is the philosophy to which First National Bank has committed itself.
And whether the client is a major international player or a new exporter starting out for the first time, there's a package to fit, says senior manager of the Specialised Trade Services division, Henry Golding.
We were the first to offer the new Export Finance Scheme introduced by the Department of Trade & Industry two years ago and we're still major players. The old scheme is still in existence but far more complex, according to Golding who believes the new scheme is ideal for someone who has been manufacturing and is now keen to enter the export market.
We do a proper evaluation to ensure that he has the ability to fulfil orders.
In order to qualify, the exporter must employ less than 200 people or have total assets of less than R5-million rand and be in possession of a firm order or a Confirmed Irrevocable Documentary Credit from the foreign buyer or Credit Guarantee Insurance Corporation pre- and post-shipment cover.
It provides exporters with the required working capital in order to manufacture or procure the goods for export without affecting their normal bank credit facilities, says Golding.
In addition the pre-shipment and post-shipment policies issued by CGIC cover the exporter against various risks including up to 75% of any loss sustained in the event of default in payment by the overseas buyer.
Golding says FNB is constantly expanding its portfolio to cater for the new opportunities presented by the new trading environment which has opened up to South Africa.
Since sanctions were lifted, for example, the UN has a visible presence in South Africa. We can help exporters to become official suppliers to the UN, says Golding.
We also have a commodity finance facility so that if, for example, a local farmer secures a big order to supply beans, we can assist.
And in every transaction, the bank takes a holistic approach, says Golding.
We liaise with forwarders, insurance companies and inspection companies etc.
And to keep our customers equally in touch an ongoing seminar programme is offered.
Keeping abreast of developments in partner trading countries requires hands on support, which is where FNB's relationships with foreign banks plays its part. In addition our financial institutions department travels extensively to these countries to keep in touch. Since the lifting of sanctions the number of fraudulent transactions has risen enormously. We are able to assist in identifying fraudulent transactions and guiding people in the right direction.
