Trade Finance – Stock Finance and Purchase Order Finance

service: Trade Finance – Stock Finance and Purchase Order Finance

Stock Finance

  • MWWCS provides the client with up-front financing for any new local or international stock procurement needs. MWWCS pays the client’s suppliers on their behalf by way of a Letter of Credit or direct transfer.
  •  The client pays MWWCS on a set due date with interest recovered monthly.
  • Security: First Pledge and cession over stock financed and a first cession of Debtors.
  • Facility type is a revolving loan facility, renewed annually.
  • This product can also be provided with a combination of an invoice discounting facility which provides a very attractive solution to finance the entire working capital cycle for a client.

Benefits

Provide finance against new stock purchases

Hedging and management of foreign exchange risks are mitigated by our Capital Markets Division.

service: Trade Finance – Stock Finance and Purchase Order Finance

Purchase Order Finance

  • This product mirrors the Single Invoice Discounting offering, however, financing starts earlier, when the client generates an acceptable purchase order from the underlying debtor.
  •  MWWCS is paid directly by a debtor or by the Asset Financier (funding the underlying asset purchased by the client) to settle the transaction.
  • Security: First cession of the underlying debtor forming part of the Purchase Order financing, and a First Pledge and cession of the stock financed.
  • Facility type is a non-revolving loan facility.

Benefits

Hedging and management of foreign exchange risks are mitigated by our Capital Markets Division.

Funding can be raised against irrevocable orders before the delivery of goods have taken place.

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Merchant West (Pty) Ltd
Merchant West (Pty) Ltd Registration Number: 2000/012050/07 is an Authorised Financial Services and Credit Provider. (FSP: 7042) (NCRCP4298)

Disclaimer
Merchant West (Pty) Ltd and its directors, officers and employees shall not be responsible and disclaims all liability for any loss, damage (whether direct, indirect, special or consequential) and/or expense of any nature whatsoever, which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of, or reliance upon any information, links or service provided through this website or any other form of publication.

Finance is available to businesses within the Republic of South Africa. Terms and conditions apply.