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Trade finance solutions to optimise business potential

In an unpredictable global business environment, you need the right banking partner. Let us help you handle your imports, exports and local trade easily and efficiently.

Safeguard your business with import finance

What you need to know

Letters of credit
Import letters of credit

Your overseas supplier may require you to provide an irrevocable letter of credit in their favour to secure a trade transaction.

We can issue letters of credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Subject to fulfilment of all our requirements, our policy is to ensure the beneficiary's bankers receive our letters of credit within 24 hours of our receipt of your application.
Revolving letters of credit

These are useful for buyers and sellers who have a long-standing trade relationship.

They involve our conditional undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed.

Depending on your needs, we will reinstate these instruments automatically and without any further amendment from you.

The number of times this can take place will be agreed upon and specified in the credit documents.
Standby letters of credit

Payments under standby letters of credit are generated by the default of the importer under a specific trade contract.

Standby letters of credit are irrevocable and payable on demand.

Upon your request as an importer, we can provide this form of conditional undertaking to the beneficiary on your behalf.

Should you fail to make settlement, we can settle on your behalf. This happens upon presentation of specific documents by the beneficiary, as required under the credit agreement.
Credit refinancing

This usually applies to instances where unfavourable market conditions exist on the payment due date and, for one reason or another, you are unable to settle.

We can settle import letters of credit on your behalf and refinance you locally up to 180 days after the payment date, depending on your requirements.

This arrangement can be applied in various instances and ultimately gives you the flexibility you need to manage your cash flow.
Import documentary collections
Your overseas suppliers present appropriate documentation to their bankers, which are then forwarded to us to facilitate collection on their behalf.

We ensure that you are advised promptly and that their instructions are carried out exactly as per their requirements.

Different forms of financing can be arranged based on the presentation of appropriate documentation.
Bills of exchange
Exporters may require a third party, usually a bank, to guarantee payment of a bill of exchange drawn on an importer under a trade contract.

This is known as avalisation and can be provided on behalf of the exporter upon request.

By endorsing the bill, the bank commits itself to pay unconditionally if the drawee defaults.

An avalised bill substitutes the bank's risk for the importer’s risk, which provides the exporter with the assurance that the payment will be made.

This bill can subsequently be discounted or used to negotiate better credit terms, which can enhance the trading relationship with the importer.

Spread your trade wings – export

What you need to know

Letters of credit
Export letters of credit

We can issue letters of credit to beneficiaries in virtually all countries worldwide and in all freely convertible currencies.

Subject to fulfilment of all our requirements, our policy is to ensure the beneficiary's bankers receive our letters of credit within 24 hours of receiving an application.
Transferable letters of credit

These are letters of credit that can be transferred from the first beneficiary to one or more additional beneficiaries.

We can issue and advise on transferable letters of credit on your behalf.

Given the risks inherent in these instruments, our trade specialists are available to assist you all the way.
Pre- and post-shipment financing
Pre-shipment financing

Provides new sources of working capital at competitive rates, making it ideal if you need to continue or expand production.

Can be used as a revolving facility as it is tailored to your production cycle.

Allows you to access funding before production and sale of the commodity.
Post-shipment financing

Provides cheaper access to funds after shipment but before maturity.

This can be done through negotiation/discounting of shipping documents.

Helps you to enhance your cash-flow position to focus on core business.

To facilitate this, all the terms and conditions under the export letter of credit need to be fulfilled.

All the solutions you need to smooth trade

Explore these trade finance options

Guarantees, bonds and indemnities
What you get

The main types of guarantees and bonds available to you include:

Bid bonds

Performance guarantees

Custom bonds

Advance payment guarantees

Retention money guarantees

Shipping guarantees

Maintenance guarantees
How you benefit

You can tender for business that you previously considered out of reach.

Improve the terms of your tenders and help you negotiate better terms on contracts.
Invoice and bill discounting
What you get

Different types of either financial or commercial documents are exchanged during trade transactions.

These provide evidence of a transaction as well as acknowledgement of debt.

This specialised form of trade financing is available with or without recourse to your business, depending on the credit assessment of both parties involved in the transaction.
How you benefit

Enhance your cash flow position

Competitively priced

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Business Club Credit cards

Need more help?

Call:

Toll Free: 0800 222 333
Tel: +256 (0) 312 218 348

Email:

absa.uganda@absa.africa

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Sitemap | Absa Bank Uganda Limited, company registration number 4227. Registered Office: Plot 16 Kampala Road, P.O. Box 2971, Kampala, Uganda. Absa Bank Uganda Limited is regulated by the Bank of Uganda. Customer deposits are protected by the Deposit Protection Fund of Uganda.

You are browsing banking for:

What do you want to do:

Trade finance solutions to optimise business potential

Safeguard your business with import finance

What you need to know

Letters of credit

Import documentary collections

Bills of exchange

Spread your trade wings – export

What you need to know

Letters of credit

Pre- and post-shipment financing

All the solutions you need to smooth trade

Explore these trade finance options

Guarantees, bonds and indemnities

Invoice and bill discounting

You might also be interested in

Need more help?

Toll Free: 0800 222 333
Tel: +256 (0) 312 218 348

absa.uganda@absa.africa

Useful Tools

Our sites

Who we are

Support

Legal

Experience banking at your fingertips

You are browsing banking for:

What do you want to do:

Trade finance solutions to optimise business potential

Safeguard your business with import finance

What you need to know

Spread your trade wings – export

What you need to know

All the solutions you need to smooth trade

Explore these trade finance options

You might also be interested in

Need more help?

Toll Free: 0800 222 333 Tel: +256 (0) 312 218 348

Useful Tools

Our sites

Who we are

Support

Legal

Experience banking at your fingertips

Toll Free: 0800 222 333
Tel: +256 (0) 312 218 348