Find a branch


Find an ATM


News + insights

News Housing index

Your access details have been entered incorrectly


Please note on your third failed attempt your profile will be blocked.

Username

Password

Have you forgotten your Username or Password?



Buyer's cashflow


The buyer's cash flow may not allow for payment to be made. It can cost the seller dearly as he/she may have incurred manufacturing and other costs on the understanding that an advance payment would be forthcoming

Advance payments


Goods shipped once payment is received


Our Advance Payments are allowed against a Proforma Invoice and favours the exporter, as the goods are only shipped (or in some cases manufactured) once payment has been received from the buyer (importer). The buyer therefore takes the risk that payment is made and product is not received.

 

Why you need this


Favours the exporter

This method of payment favours the exporter, as the goods are only shipped (or in some cases manufactured) once payment has been received from the buyer (importer).

  • The buyer pays the seller before the goods have been shipped, or in some cases before the goods have been manufactured
  • Payment can be effected by bank draft or electronic payment (SWIFT).

What you need to do


Whether you are importing or exporting

If you are exporting


  • On conclusion of the contact of sale, the buyer sends you advance payment
  • Your bank will receive an inward transfer in your favour
  • You will need to supply your bank with the appropriate settlement instructions, as well as conversion instructions if the transfer is in foreign currency
  • You ship the goods and forward the documents to the buyer

If you are importing


  • The contract of sale is concluded
  • Contact our International Business Centre and request them to do a SWIFT transfer or issue you with a draft
  • You will need to supply the International Business Centre with details of the beneficiary (including banking details, amount and currency) and a copy of your invoice
  • On receipt of the goods and documents, you clear the goods

What the risks are


Know what to look out for

Laws imposed

The seller's country may impose laws that prevent the shipment from taking place.



Seller might not ship

The seller may not ship the right quality and/or quantity of goods, or he/she may not ship at all.



No advance payments allowed

The buyer's country may not allow advance payments in respect of imported goods.



Buyer's cashflow

The buyer's cash flow may not allow for payment to be made.

Read more

Minimise the risks


  • Bank/Status reports can be obtained to ascertain the reliability and integrity of the seller
  • Country reports are useful in determining the stability of the seller's country
  • If the seller will be incurring costs to either manufacture or secure the goods from another supplier, reports should be obtained on the buyer and the buyer's country
  • The buyer may request the seller to issue an Advance Payment Guarantee covering any monies advanced to the seller, should the seller default
 
 

When to use this


Manufacture only when paid

When you should use this method of settling an international trade transaction.

This method of payment favours the exporter as he/she only ships or manufactures the goods once payment has been received from the buyer. The buyer, therefore, runs the risk of paying for goods that may never arrive, or not be in accordance with the order.

Getting it made easy


Advance payments

How to get it

Call me back

Other ways to apply

Contact us