THE CHANGING political scenario in South Africa has had a major impact on trade and consequently on the way local financial institutions operate.
A lot of international banks have come in, cherry-picking the top companies, says Frank Dunlop, chief manager of First National's trade department.
Local banks need to be able to offer their clients something different. There have also been changes in the choice of methods of payment. Letters of credit, for example, are not as prolific as in the past. There's been a move to open account trade as people get to know one another and as borders have opened. This is particularly evident at the top end of the market. Dunlop strongly believes that now more than ever there is a need to become a partner with companies involved in trade.
In the case of a grain export, for example, by involving yourself with the inspection companies like SGS or Bureau Veritas risk is minimised. If your grain is going to be your security you need to work in partnerships to put deals together, particularly on the commodity side.
