EFFATA trade finance Services

Effata Consultants can assist in finding investment for Africa projects and trade finance facilities for African companies so that they can engage in global trade effectively. 

The Problem:

When importing commodities or goods, you must typically provide your Supplier/Seller with a trade finance facility, such as a Standby Letter of Credit (SBLC) or a Documentary Letter of Credit (DLC). This requirement arises because you, the Buyer/Importer, wish to receive the goods before making payment, while the Supplier wishes to receive payment before releasing the goods. This creates a conundrum, necessitating a trade finance facility. Suppliers often request that this facility be issued by an international bank.

However, when you approach your local bank to arrange this through their international corresponding banks, they typically require 100% cash backing before issuing the SBLC or DLC. As a Buyer/Importer, this presents a significant challenge: how to secure 100% of the cash before receiving and selling the goods.

The Solution:

Effata Consultants, through our partnership with Bond-Cap, offers a solution to intermediate the trade. We provide the trade finance facility to your supplier in exchange for a fee from the Buyer. Additionally, we offer an indemnity to the credit provider, allowing them to bypass the lengthy client onboarding process and credit review. 

Our ability to facilitate this stems from our access to an international network of Credit Managers who control over $500 million in cash deposits. These Credit Managers trust us to conduct thorough due diligence on clients and trades and to make formal recommendations. Our client and transactional due diligence are performed by our partner, Ekenua & Co Limited, who serve as our exclusive agents in Africa.