Start-to-Finish solution combines logistics and trade finance expertise

Tailoring finance solutions to match the client’s business model is the essence of the Sasfin Premier Logistics value proposition, says sales and marketing director Tamica Ching. When it comes to trade finance, there’s no ‘one size fits all’, which is why flexibility is a key element of the company’s service offering. Working as a team with Sasfin Bank, the logistics company has seen significant growth in its ‘Start-to-Finish’ import solution which combines the logistics and finance expertise within the group under a single banner with a single rand-based invoice. “Our focus at Sasfin Bank is on entrepreneurial businesses with a turnover of R10m a year and up,” says national sales manager – trade finance at Sasfin Bank, Arno van Niekerk. “We’re not a large bank but we’re very flexible in providing a tailored finance option. “We understand that the success of international trade is firmly rooted in the access to and the use of competitively priced trade finance facilities that free up the client’s business from cash flow constraints. “We pay the client’s foreign supplier on his behalf and in the denominated currency – be it dollars, euros or whatever – and we provide terms of 120 days, sometimes up to 150 days from date of payment or bill of lading, whichever is the earlier,” said Van Niekerk. And this is a major differentiator in the logistics industry, says Ching, where 30 days is the norm, with larger exporters and importers able to negotiate 60 days. Sasfin also offers debtor finance because while it is accepted business practice to sell goods on credit terms (usually 30 days or longer), this can put pressure on cash flow and growth, especially if a business is undercapitalised, says Van Niekerk. “Our debtor finance solution is based on the value of the accounts receivable of our client and provides tailor-made debtor finance facilities by discounting credit sales up to 80% of invoice value.” Rounding off the finance solution is the company’s foreign exchange facility which provide the client with access to foreign exchange markets for imports and exports. “Our Start-to-Finish product encompasses the three main elements of finance, forex and freight,” says Ching. But these can be offered on a modular basis depending on the client’s needs.” An additional benefit of the Start-to-finish product with its single invoice lies in its BEE credentials. “The single invoice originates from Sunlyn which is currently a level 3BEE contributor, providing additional benefits to the client,” said Van Niekerk. CAPTION Team work … Tamica Ching of Sasfin Premier Logistics and Arno van Niekerk of Sasfin Bank.