CFPA | Corporate Funding Partners Africa Global Trade Finance | Letter of Credit Facilities | Consulting | Commodity Trade

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COMPANY PROFILE

2nd Floor, Corporate Park Tel: +27 11 4555589 4&6 Skeen Boulevard Fax: +27 11 4502525 Bedfordview, 2009 Fax to Email: +27 86 5123505 South Africa Website: www.cfpafrica.com

 

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CFPA | SKY IS THE LIMIT

CFPA | can assist with any company’s international trade finance needs by arranging documentary letters of credit to assist with corporate cash flow requirements. Our Company can open letters of credit to fulfill inventory financing needs for large and small purchase orders through our purchase order financing scheme, and to provide an enhancement to current banking arrangements.

 

TRADE FINANCE SERVICES A standby Letter of Credit is a financial document that ensures your client’s obligation to act in accordance with the terms of an agreed-upon contract. It can only be used as collateral for payment in the event of default. As a performance bond or for repayment of money borrowed or advanced. CFPA acts as a principle agent in Africa for financial instrument providers (collateral providers) that supply Letters of Credit to enhance the client’s trading activities. CFPA facilitates and manages the process of the opening of letters of credit on behalf of CFPA’s clientele, and continues the ongoing management of the letter of credit process throughout the period the period for which a transaction may occur. As a leading provider of alternative global trade solutions, we can help you optimize your cash flow and simplify the trade process, thus helping you facilitate your import business effectively and strengthening the way you do business globally. CFPA uses the services of several American and European banks, because of the company’s firm banking relationships; it is positioned to provide flexible and expedited services to its clientele.  

Due to the flexibility of the company, a specific collateral deposit is not required, and CFPA does not necessarily become a creditor to its client companies. CFPA provides an alternative to the banking or lending facilities, which may be currently provided by other institutions. The services offered have facilitated excellent relationships between CFPA’s clients and their overseas suppliers, thus allowing the growth of certain business segments which companies would otherwise not have the ability to pursue. When CFPA issues an Import Letter of Credit for your account, as per the agreed draft format, which you confirm with your supplier, you get the highest level of support and assurance that your goods will be shipped as you intended before you, pay. Back your obligations to your business partners with a standby Letter of Credit issued by us. Whether your company conducts business domestically or globally, a Standby Letter of Credit can help to optimize your cash flow, improve your credit position, and allow you to take advantage of opportunities that otherwise might be out of reach.

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CFPA | Our company can open letters of credit to fulfill inventory financing needs for large and small purchase orders.

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LETTER OF CREDIT FACILITIES

An Understanding of How to Begin Our services provide an excellent support for importers and import distributors for the following reasons:

• CFPA supplements current facilities. • CFPA does NOT become an additional creditor to your

current lender(s). We will work with your Lender to effect successful import transactions.

CFPA offers cost effective alternatives to your current trade finance availability from your lender All letters of credit comply strictly to UCP 600 (current edition). A "draft" of each Letter of credit is provided to our clients for final approval prior to all Letter of Credit transactions. The staff at CFPA manages the entire Letter of Credit process on behalf of the client. How to start: The easiest transition for a new client, is to open a single Letter of Credit to a current supplier. In so doing, a new client can use the experience to critique the process, and build on it. To enroll please contact one of the CFPA Staff.

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Understanding The Basics

Letters of Credit: The Basics Definition: A documentary credit is a (conditional) bank undertaking of payment. It is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and on the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit and against stipulated documents or other conditions. The issuing bank is putting out its credit and good name for the sake of the buyer. Buyer: Because the documentary credit is a conditional undertaking, payment is made on behalf of the buyer against documents, which may represent the goods and give the buyer rights to them. Seller: Because the documentary credit is a bank undertaking, the seller can look to the bank for payment, instead of relying upon the ability or willingness of the buyer to pay. However, because the undertaking is conditional, the seller only has the right to demand payment if he meets all the requirements of the credit. It is, therefore, unwise for the seller to proceed with shipment until he is aware of these requirements and is satisfied he can meet them. Summary: Documentary credits therefore:

• Are arrangements by banks for settling international commercial transactions.

• Provide a form of security for the parties involved. • Ensure payment, provided that the terms and

conditions of the letter of credit have been fulfilled. • Mean that payment by such means is based on

documents only, and not on merchandise or services involved.

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COMPANY PROFILE: A SUMMARY CFPA is a non-institutional provider of certain types of Letters of Credit. Our organization opens letters of credit on behalf of our client’s businesses to facilitate their trade requirements. CFPA manages the process of the opening of Letters of Credit on behalf of its clientele, and continues the ongoing management of the letter of credit process throughout the period for which a transaction may occur. Our company opens letters of credit to fulfill inventory financing needs for large and small purchase orders through our purchase order financing scheme, and to provide an enhancement to current banking arrangements. Corporate Funding Partners Africa assists with any company's international trade finance needs by providing documentary letters of credit to assist with corporate cash flow requirements.

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CFPA’s clients import items ranging from commodity goods to apparel and textiles, and electronic components to consumer appliances and specialty products. The Letters of Credit are opened to suppliers in Asia, Africa, South America and other points in the world. Our expert staff can work with clients to arrange their transfer letters of credit, performance guarantee requirements, cash against document requests and other such trade instruments by using our extensive global banking facilities. Corporate Funding Partners Africa maintains a balanced relationship with certain American and European banks, and is a representative for two special purpose banks. Because of the company's firm banking relationships, it is positioned to provide flexible and expedited services to its clientele.

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SERVICES

If you are trading on an international level, you‘re aware of the risks involved with your transactions. CFPA offers many solutions which include import and Export Letters of Credit, Standby Letters of credit, Bank Guarantees and Performance Bond. An Import Letter of Credit ensures your credit worthiness to a foreign supplier. Your supplier receives a level of transaction protection that may result in a more favorable purchase price to you. CFPA issues these letters for your account, verifies that your supplier’s documents are in compliance with the letter of credit, and allows you time to ensure that your suppliers have performed so that you allocate your funds appropriately for the shipment for payment to the supplier directly, where after the issuing Bank pays your supplier.

LETTERS OF CREDIT: THE BASICS

Definition A documentary credit is a (conditional) bank undertaking of payment. It is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and on the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit and against stipulated documents or other conditions. The issuing bank is putting out its credit and good name for the sake of the buyer. Buyer Because the documentary credit is a conditional undertaking, payment is made on behalf of the buyer against documents, which may represent the goods and give the buyer rights to them. Seller Because the documentary credit is a bank undertaking, the seller can look to the bank for payment, instead of relying upon the ability or willingness of the buyer to pay.

CFPA’s role is to establish relationships with all clients requiring credit enhancements, providing all consultation to the clients and finally making representative to our collateral providers.

The Business success attributed to maintaining the required standards of services, experienced management, structured logical solutions and foremost as a rule-service delivery on time. When in doubt, consult one of our experienced CFPA trade finance representatives who will help you structure your international trade transactions to minimize risk and cost.

Let us help you select what’s most appropriate for your international and domestic trade needs.  

 

 

 

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ABOUT US CFPA | International arranges Letters of Credit to client Business. CFPA facilitates and manages the process of the opening of Letter of Credit on behalf of its clientele, and continues the ongoing management of the letter of credit process throughout the period for which a transaction may occur. CFPA international uses the services of several Financial institutions and is a representative for two special purpose. Because of the company’s firm banking relationships, it is positioned to provide flexible and expedited services to its clientele. Due to the flexibility of the company, a specific collateral deposit is not required, and FCPA does not necessarily become a creditor to its client companies. CFPA provides an augment to the banking or lending facilities which may be currently provided by other institutions. Through its strong banking relationships in which world banking institutions work in conjuction with CFPA’s expert staff, the company avails itself of the foremost experts in the World of Trade Finance and critera set forth in UCP600 for documentary LC’s and ISP98 for standby Letters of Credit. There alliances help to creat opportunities for growth and profitability the client companies. If your company is looking for a strategy to finance goods to fill your orders, or simply to support growth, contact our Global Representatives. 2nd Floor, Corporate Park Tel: +27 11 4555589 4&6 Skeen Boulevard Fax: +27 11 4502525 Bedfordview, 2009 Fax to Email: +27 86 5123505 South Africa Website: www.cfpafrica.com