Avalised Bills of Exchange

Secure your international trade transaction journey affordably and access working capital relief

Overview

Bill avalisation is a BANK OF AFRICA undertaking or guarantee on behalf of an importer to honor payments of bills of exchange from the supplier (exporter) for international trade transactions. This solution is normally used where the supplier (exporter)'s only concern is the importer’s payment risk.

BANK OF AFRICA provides an easy financing structure for importers to honor payments of bills of exchange from their exporters (supplier), giving the supplier assurance that payment will be met through the BOA undertaking or guarantee on behalf of the importer.

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

TRADE SECURITYSafer trading option compared to open account (paying cash to supplier)

SUPPLIER CONFIDENCEBuild your trade supplier relationships on reliability and trust with a solid BOA guarantee

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

TAILOR-MADE StructureTailor-made credit structure according to your business cycle

QUICK ProcessingQuick application processing

What You Get

Provide your supplier with a formal BOA guarantee or undertaking to pay on time
Enables you to negotiate longer credit terms with your supplier
It is less expensive and less complicated than a letter of credit with affordable avalisation commission
Free up available working capital by negotiating more favorable commercial terms with suppliers and benefit from prepayment elimination
Enhance your trade relationships with new and existing suppliers by providing a globally accepted BOA payment guarantee.
Access quick credit and allow your supplier to receive payment quickly to enable shipment of goods.
There when you need it. No delays. Enjoy flexibility allowing access to funds when you need them most matched to your specific trade flows

Receive a credible trading guarantee. Your buyer formally undertakes to pay on time, through their bank
Protection against political and economic risks if you export abroad
Your trade transaction is watertight. You are protected against the risk of your client becoming insolvent
Hold the title of goods until the payment is made
Improve the administration of your export processing
Access quick funding based on confirmed orders for the production and supply of the goods to importers/buyers
Affordable avalisation commission

Handling commission (This fee is applied only when you pay before or on the agreed bill of exchange payment date)
BOA base lending rate + margin (You will only be required to pay credit interest if you request the Bank to make the payment on your behalf to the exporter. A trade loan limit will then be provided for your business allowing you settle your trade loan in affordable installments)
Contact us today and explore our tailor-made and affordable credit pricing options

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