Letters of Credit

Secure your international trade transaction journey

Overview

A letter of credit (also known as documentary credit) is an irreversible undertaking or guarantee issued by BANK OF AFRICA at the request of an importer to make payment for goods to an exporter upon presentation of specified documents that comply with the terms and conditions set out in the sales agreement.

From an exporter’s perspective, the letter of credit transfers any payment or transaction associated risk from the importer to BANK OF AFRICA. It is the most reliable and secure way for importers and exporters to protect their trading interests and minimize their respective risks in a trade transaction.

ELIMINATE PREPAYMENT Improve payment terms with your supplier and ease pressure on your working capital

SECURE GLOBAL TRADING Safer compared to open account (paying cash to supplier)

Flexible Plan Flexible and affordable repayment periods up to 12 months

ANNUAL LIMITS Annual financing limits available to reduce delays in processing of your recurring trade finance requests

TAILOR-MADE Structure Tailor-made credit structure according to your business cycle

QUICK Processing There when you need it. No delays

What You Get

Securely enter a trade by reducing certain risks, such as goods arriving late or not meeting specifications
Access financing to purchase goods in a way that matches up with your domestic cash flow requirements
Free up available working capital by negotiating more favorable commercial terms with suppliers and benefit from prepayment elimination
There when you need it. No delays. Enjoy flexibility allowing access to funds when you need them most matched to your specific trade flows

Securely trade through a worldwide acceptable credit risk control and payment framework
Enjoy the option of obtaining pre or post-shipment finance to help satisfy working capital requirements
Access quick funding based on confirmed orders for the production and supply of the goods to importers/buyers
Stay in control of your transaction
Negotiate more favorable commercial terms with buyers (importers) and provide a more competitive offering to grow your business
There when you need it. No delays. Enjoy flexibility allowing access to funds when you need them most matched to your specific trade flows

Download our services and products pricing guide for more information.

General Business Credit Application Requirements

Fully filled in business loan application form (Available at a branch or delivered to your office)
Financial credit bureau card for the borrowing entity
Business bank statements for past 12 months
Business financial statements, including and income statement, balance sheet and cash flow
Passport size photograph of each director
Copy of valid identification card of each director
Valuation report for the property / assets to be pledged as collateral (where applicable or requested by the Bank)
Business plan and an updated business profile
Tax identification number (TIN) and tax clearance certificate
Formal written request stating the amount, purpose, tenor, source of repayment and proposed security (where applicable)
Board resolution to borrow (For limited, partnership companies)
Trading license
Any other information as may be requested by the Bank, depending on the nature of the request. Our Relationship Management team will guide you on the process