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Import and Export Invoice Finance
Import and export invoice financing, as their titles imply, pay for the accompanying expenses associated with receiving and shipping goods to and from companies in other parts of the world. From tariffs to freight rates, duties and fees, capital requirements remain key.
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EIF
IIF
Value Proposition/Gain
Key/important Features
Target Market
EIF
Export Invoice Finance (EIF) is financing to the exporter/seller based on the invoices issued by the exporter/seller. EIF is a short-term financing which has recourse to the exporter/seller.
IIF
Import Invoice Finance (IIF) is financing to the importer/buyer. Normally, the exporter sends the invoices directly to the importer who requests for financing to the bank by submitting the trade documents (including the invoices) to the bank.
Value Proposition/Gain
- Better cash flow
- The buyer will enjoy cheaper financing compared to an overdraft facility
- As a buyer the customer can reimburse the supplier on a sight basis and should be in a better bargaining Position.
- Provides greater flexibility and liquidity by bridging the gap between payment for imported goods and receipt of funds through subsequent sales.
- Allows you to make timely payments to your suppliers.
- Enhances your business reputation with potential to negotiate more favorable payment terms.
- Can be used to extend your credit period beyond the terms given by your supplier under Documentary Credits and Documentary Collections.
- Available through local funding (Naira) and offshore funding (foreign currency).
- Available for importation of goods.
Key/important Features
- Letters of Credit,
- Bill for Collection,
- Advance PaymentÂ
Target Market
Target Market
Importers, Exporters
