The complexity of international trade can overwhelm a newbie. Therefore, if you are an exporter or importer you will need reliable partners to help you navigate the intricacies of documentation, payment, and clearance involved in crossed-continent buying and selling. Your partners are not merely the shippers, clearing agents, financial institutions too have developed expertise that will help balance up your trade naivety with core logistic advice, documentation and receipt of payment or payment transfer in addition to other core business services.
Zenith Bank is one of Nigeria’s top commercial banks providing internet banking, corporate banking, personal banking and SME banking. Three (3) of the services it offers importers and exporters are:
1. Issuance of import letter of credit (LC): Letter of credit provides assurance and cover for an importer when engaging an oversea seller. Banks such as Zenith provides an undertaking to cover the importer’s payment thereby facilitating timely processing and shipment of goods from sellers’ country.
2. Aid for export transaction: Exporters need the involvement of credible financial institutions in receiving payment from overseas against several regulatory hurdles. To ensure transaction and relationship with clients outside the shore of the exporters’ countries are carried out hitch-free, financial institution will help facilitate payment in the accepted format which include letter of credit, bill for collection and payment in advance. Whereas total value of goods may include logistics such as in the case of FOB (Free-on-board); or include logistics as accepted for C&F (cost and freight), the exporter is expected to process the NXP form (a statutory document that must be completed by anyone shipping goods into Nigeria), and forward the shipping documents, before processing the export proceed through Zenith Bank.
3. Collect payment (Import bill for collection) on behalf of exporter: Import Bill for Collection is an order issued by the exporter to a bank to collect money from his or her overseas buyers. Zenith Bank and many other commercial banks offer this service. And, of course, this is very important because payment are made in a different currency under tough scrutiny by top security agencies that have the responsibility of monitoring laundering and illegal transactions. The involvement of a credible financial institution in the process will lessen the hurdles.
For more info visit https://www.zenithbank.com/