Admin I Monday, June 26, 2023
LAGOS, Nigeria – Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, offers insightful guidance to businesses on their trade finance solutions as a valuable resource to optimise operations and boost profitability.
The financial institution emphasises that its trade finance solutions can assist businesses in managing risks, improving cash flow, and increasing efficiency in international trade.
During a guest appearance on 99.3FM Nigeria Info’s 3T Impex AfCFTA Trade Discourse show recently, Ifeoma Abdul, Manager, Trade Finance at Stanbic IBTC Bank PLC emphasised the importance of acquiring trade finance strategies for traders looking to improve their bottom line. By leveraging these solutions, businesses can achieve their financial objectives more effectively and efficiently.
According to Abdul, trade finance refers to the financial instruments, products, and services that facilitate international trade transactions between buyers and sellers. It mitigates the risks involved in international trade, often involving multiple parties, currencies, and legal systems.
Trade finance can take many forms, including letters of credit, bank guarantees, documentary collections, and export credit insurance. These financial instruments help to ensure that exporters get paid for their goods while importers are protected against non-delivery or non-payment.
Trade finance also includes services such as supply chain finance, which provides working capital to suppliers, and factoring, which allows businesses to sell their accounts receivables to a third party in exchange for immediate cash.
Overall, trade finance enables businesses to engage in global trade by reducing the risks and uncertainties involved in cross-border transactions.
Abdul urged investors to prioritise professional financial solutions for trade transactions due to the inherent challenges and risks. She described Stanbic IBTC Bank as Nigeria’s leading trade banking franchise, with a diverse client base, including local corporates, multinationals, and government entities.
The bank delivers world-class solutions and outstanding service, making it a trusted partner in trade finance. Stanbic IBTC Bank also deals with several trading currencies, which enables easy transactions. The most prominent is the US dollar.
Abdul further highlighted payment platforms like the Pan-African Payment Settlement System (PAPSS). PAPSS is a payment and settlement system designed to facilitate trade in Africa by enabling efficient, low-cost, and secure cross-border transactions. The scheme aims to address the challenges of high transaction costs and delays associated with cross-border trade in Africa, which have hindered the continent’s economic development. PAPSS is expected to enable faster and cheaper cross-border payments, increase transparency and reduce the risk of fraud.
With its expertise and products, Stanbic IBTC Bank enables businesses to expand their global reach and succeed in international markets. The bank’s commitment to supporting its clients in this area has made it a trusted partner and Nigeria’s leading trade banking franchise.
Abdul encouraged investors seeking professional financial solutions to engage in cross-border trade to read the Africa Trade Barometer report which provides realiable data and insights on African markets and economies for business owners looking to start or scale up in the trade export sector.
To read the full Africa Trade Barometer report, click here
For guidance on trade finance solutions and enquiries, email us at CallMe@stanbicibtc.com
