What it is

A letter of credit replaces the buyer's promise to pay with a bank's promise. The issuing bank undertakes to pay the seller, at sight or at a later date, provided the seller presents the documents required by the credit: invoice, transport documents, certificates. It is the most widely used instrument for securing trade between parties who do not yet know each other.

• Sight LC: paid as soon as documents are checked.
• Usance or deferred payment LC: paid at a later date, which gives the buyer time.
• Confirmed LC: a second bank adds its own guarantee of payment.
• Transferable and back-to-back LCs: used by traders who resell goods.
• Revolving LC: covers repeated shipments under one credit.

How it works

1. The buyer asks its bank to issue a letter of credit in favour of the seller.
2. The seller's bank advises the credit, and may confirm it.
3. The seller ships the goods and presents the required documents.
4. The bank checks the documents and pays, at sight or at maturity.

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What it is

When a supplier does not know the issuing bank, or is worried about country risk, it asks for the letter of credit to be confirmed. The confirming bank, usually an international bank, commits to pay the seller itself if the documents are compliant, whatever happens to the issuing bank. Without confirmation lines, many letters of credit issued by African banks are simply refused.

How it works

1. We review your trade flows, your clients and your LC volumes.
2. We identify confirming banks with appetite for your country and your institution.
3. The confirming bank carries out its due diligence and sets a limit and pricing.
4. Your letters of credit are confirmed under the agreed line.

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What it is

A standby letter of credit is a safety net. Unlike a documentary letter of credit, it is not meant to be used: the bank pays the beneficiary only if the applicant fails to pay or to perform, on presentation of a demand. It is used to secure supply contracts, credit terms, tenders or loans, and it is often cheaper than blocking cash as collateral.

• Financial SBLC: guarantees a payment obligation, such as a loan or supplier credit.
• Performance SBLC: guarantees the completion of a contract.

How it works

1. We define the obligation to secure and the beneficiary's requirements.
2. A partner bank assesses your credit profile and the security available.
3. The SBLC is issued and advised to the beneficiary through the banking network.
4. It is only drawn if you default, on presentation of a demand.

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What it is

A bank guarantee is a bank's commitment to compensate a beneficiary if its client does not meet its obligations under a contract. Public buyers, project owners and customs authorities routinely require them. We help you obtain the right guarantee, from the right bank, in a form the beneficiary will accept.

• Bid bond (tender guarantee): shows that a bidder is serious.
• Performance bond: covers the correct completion of the contract.
• Advance payment guarantee: lets you receive a down payment from your client.
• Retention and warranty guarantees: release money held back until the end of a project.
• Customs and payment guarantees: defer duties or secure supplier payments.

How it works

1. Your contract or tender specifies the guarantee required.
2. We structure the request and approach the right partner bank.
3. The guarantee is issued, often under ICC rules, and sent to the beneficiary.
4. It is released at expiry or once your obligations are met.

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What it is

In a documentary collection, the banks act as intermediaries without guaranteeing payment. The buyer receives the documents needed to collect the goods only when it pays (documents against payment, D/P) or accepts a bill of exchange payable later (documents against acceptance, D/A). It costs less than a letter of credit and suits partners who already trust each other.

How it works

1. The exporter ships the goods and hands the documents to its bank.
2. The bank sends them to the buyer's bank with collection instructions.
3. The buyer pays, or accepts a bill of exchange, to receive the documents.
4. The funds are sent back to the exporter.

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What it is

Producers and exporters often need cash months before they are paid: to buy raw materials, pay farmers or run production. Pre-export finance lends against a future export contract, and repayment comes directly from the buyer's payments. In prepayment structures, the buyer or trader advances the funds.

How it works

1. An offtake or sales contract is signed with a buyer.
2. The lender advances funds on the strength of that contract.
3. Export proceeds are paid into a controlled collection account.
4. The facility is repaid automatically as shipments are paid.

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What it is

Structured commodity finance looks at the goods and the transaction rather than only the balance sheet. The lender finances inventory stored in monitored warehouses, goods in transit and the resulting receivables, under the control of a collateral manager. The amount available grows with your volumes.

• Inventory and warehouse receipt finance.
• Borrowing base facilities.
• Tolling and processing finance.

How it works

1. The goods are stored in a monitored warehouse or tracked in transit.
2. The lender advances a share of their value.
3. The goods are released as they are sold and paid for.
4. Stocks and prices are monitored throughout the facility.

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What it is

In a supply chain finance programme, a large buyer approves its suppliers' invoices, and a financier pays those suppliers early. Because the risk is on the buyer, suppliers access cash at a lower cost than they could on their own, while the buyer can keep or extend its payment terms.

How it works

1. The buyer approves its suppliers' invoices on a platform.
2. Suppliers choose which invoices to be paid early.
3. The financier pays them, minus a small discount.
4. The buyer pays the financier at the original due date.

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What it is

When clients pay at 60, 90 or 120 days, cash is tied up in receivables. Receivables finance and factoring let you sell or pledge those invoices to a financier and receive most of their value immediately. With export factoring and credit protection, you can also be covered if a foreign buyer does not pay.

• With or without recourse.
• Domestic and export factoring.
• Invoice discounting, where you keep collecting from your clients.

How it works

1. You issue your invoices as usual.
2. The financier advances most of their value.
3. Your clients pay at their usual due date.
4. You receive the balance, minus the financing cost.

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What it is

When an exporter grants its buyer several months or years to pay, it can sell the resulting receivable to a forfaiter, without recourse, as long as it is backed by a bank: a deferred-payment letter of credit, or a bill of exchange or promissory note guaranteed by a bank (aval). The exporter is paid immediately, and the risk leaves its balance sheet.

How it works

1. The exporter obtains a bank-backed deferred-payment instrument.
2. A forfaiter buys the receivable at a discount.
3. The exporter is paid immediately, without recourse.
4. The forfaiter collects the payment at maturity.

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What it is

Export credit agencies, such as UK Export Finance or the Export-Import Bank of the United States, support purchases of goods and services from their countries by guaranteeing or insuring the loans that finance them. For buyers and banks in Africa, this opens the door to long tenors and larger amounts for equipment, infrastructure and energy projects.

How it works

1. We identify the supplier country and the relevant agency.
2. A lending bank structures the loan with the agency's cover.
3. The agency and the bank carry out their due diligence.
4. The loan finances the purchase and is repaid over several years.

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What it is

Every bank has limits on how much risk it can take on a country, a bank or a client. Risk participation lets another bank take a share of your trade exposure, funded or unfunded, while credit insurance covers you against non-payment. Both free up your limits so you can support more transactions.

• Funded and unfunded risk participation.
• Single-buyer and portfolio credit insurance.

How it works

1. We map the exposures you want to share or cover.
2. We approach banks and insurers with appetite for the risk.
3. A limit and a price are agreed.
4. Your transactions are covered as they are booked.

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What it is

A bank cannot send an international payment or handle a letter of credit on its own: it needs correspondent banks abroad. Over the past decade, many global banks have reduced these relationships with African institutions. We help you keep, rebuild and diversify your correspondent network.

How it works

1. We review your current relationships, flows and compliance set-up.
2. We identify correspondent banks suited to your currencies and corridors.
3. We prepare and support the due diligence exchange.
4. Accounts are opened and your teams are onboarded.

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What it is

International banks only work with institutions whose anti-money laundering, know-your-customer and sanctions frameworks meet their standards. Many relationships fail at this stage. We help you assess your framework, close the gaps and present a complete, credible file, including the Wolfsberg correspondent banking questionnaire.

How it works

1. Assessment of your AML, KYC and sanctions framework.
2. A prioritised plan to close the gaps.
3. A complete documentation pack, including the Wolfsberg questionnaire.
4. Presentation of your institution to partner banks.

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What it is

Trade lines and on-lending lines give your institution the hard currency and the long-term funding it needs to finance its clients' imports, exports and investments. They come from international banks and from development finance institutions that support specific sectors such as SMEs, agriculture, women-led businesses or climate projects.

How it works

1. We define the programme and the eligible clients.
2. We approach the lenders and DFIs best suited to it.
3. We support the due diligence and negotiation.
4. The line is drawn to finance your clients, with regular reporting.

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What it is

Raising capital is a process, not an event. We help you define how much you need and in what form, prepare the materials investors expect, and approach the investors and lenders from our network who are most likely to back you, through to closing.

How it works

1. Diagnosis: amount, instrument and timing.
2. Preparation: business plan, financial model, investor presentation and data room.
3. Outreach to selected investors and lenders.
4. Negotiation of terms and support to closing.

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What it is

When standard loans do not fit, structured financing combines several instruments, tranches or guarantees to match a specific need: a portfolio, a programme, an acquisition or a regulatory target. We design the structure and find the partners to fund it.

• Quasi-equity and hybrid instruments.
• Asset-backed and portfolio financing.
• Acquisition financing.

How it works

1. We analyse your cash flows, assets and constraints.
2. We design the structure and the security package.
3. We approach investors and lenders suited to each tranche.
4. We coordinate the documentation through to closing.

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What it is

When a financing is too large for one lender, it is syndicated: several banks and institutions share it under a single agreement, with one arranger and one agent. This gives access to bigger amounts, spreads the risk, and builds relationships with several lenders at once.

How it works

1. We define the amount, the tenor and the structure.
2. We work with an arranging bank to prepare the information memorandum.
3. The loan is presented to a group of lenders.
4. Documentation, signing and drawdown.

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What it is

Senior debt is repaid first, and is often secured on assets. Because it carries the least risk for lenders, it is the cheapest form of borrowed money. It is usually the foundation of any funding structure.

How it works

1. We assess your borrowing capacity.
2. We structure the loan and the security.
3. We approach the right lenders.
4. We support you through to drawdown.

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What it is

Mezzanine finance ranks behind senior debt but ahead of equity. It often combines interest with a share of the upside, and is typically repaid in one go at maturity. It lets you go further than senior lenders allow, without giving up as much control as an equity raise.

How it works

1. We size the gap between senior debt and equity.
2. We define the terms: interest, upside sharing, maturity.
3. We approach specialised mezzanine investors.
4. We negotiate the intercreditor terms with senior lenders.

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What it is

Subordinated debt is repaid after senior creditors. For banks, long-dated subordinated debt that meets regulatory criteria can count as Tier 2 capital, which increases capacity to lend and to issue guarantees without issuing new shares.

How it works

1. We assess your capital ratios and your regulator's requirements.
2. We structure an instrument that qualifies as regulatory capital.
3. We approach DFIs and impact investors active in the segment.
4. We support regulatory approval and closing.

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What it is

Development finance institutions support African banks and companies with loans, equity, technical assistance and guarantees. A partial credit guarantee, for example, covers part of the losses on a portfolio of loans to SMEs, which lets a bank lend more to a segment it considers risky.

How it works

1. We identify the DFIs whose mandates fit your project.
2. We prepare an application aligned with their priorities.
3. We support their due diligence and impact requirements.
4. We help you meet reporting obligations after signing.

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What it is

Strong institutions often stay invisible to international investors and banks simply because nobody has presented them properly. We help you tell your story, prepare the materials international partners expect, prepare for a credit rating if relevant, and meet the right people at the right events.

How it works

1. We review how your institution is perceived today.
2. We prepare an investor presentation and a factsheet.
3. We organise meetings and roadshows with partners.
4. We keep you in front of our network over time.

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What it is

Entering a new market takes more than a company registration: you need the right structure, a bank account, trade finance and local partners. We coordinate all of it, drawing on our network of banks, law firms and corporate service providers.

How it works

1. We define your target market and the right structure.
2. We incorporate your entity and open banking relationships.
3. We set up the trade instruments you will need.
4. We introduce you to local partners and clients.

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