Hellmann launches finance package

HELLMANN WORLDWIDE Logistics (HWL) has launched a new offshore trade financing package for South African-based importers and exporters at what HWL executive director Gernot Just believes are highly attractive rates. In alliance with a Jersey-based company, Hellmann's Global Trade Finance offers approved traders the London Interbank rates which presently stand at 2,5% interest per annum compared to the 15% prime rates charged by local banks. "The package benefits importers and exporters looking to finance their trade off balance sheet at competitive costs," says Just. "Furthermore, it allows the company to trade without exposure to credit risk, at the same time improving cashflow." But there are several other benefits, says Just. "As the payment of goods is effectively settled within five days of presentation of invoice, the seller achieves immediate liquidity without exposure to credit risk and could therefore expand sales volumes. "For the South African importer, credit is available without blocking existing bank facilities. The buyer can negotiate competitive discounts for the purchased goods by taking advantage of the early payment facility at the same time benefiting from extended payment terms at low interest rates." And the savings are significant. Comparing current interest rates and bank charges, Just says that a credit of US$1 million over 60 days through Global Supply Chain Finance would effectively mean a saving of US$19480.00 for the transaction.