A facility is provided to logistic service providers which they utilise by making disbursements on behalf of their clients (exporters and importers). The facility is secured by a session of the debtor’s book.
Who can apply?
- Freight forwarding companies who make disbursements on behalf of their clients;
- And have to provide terms to their clients
How do you qualify?
- A balance sheet evaluation of the client is done
- The facility should be covered by an unencumbered debtors book of 150% and
- By free available equity of 20%
Why logistic finance?
- Increase working capital.
- Improve cash flow.
- Competitive exchange rates on foreign disbursements.
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The Journal Of Commerce: Freight Forwarders