Export Finance

Overview

Export finance supports businesses that sell to overseas buyers. It can help secure payment before shipment, fund production for a confirmed order, or release cash after shipment while the buyer's payment is still outstanding. Export procedures for goods leaving Nigeria also involve documentation for customs and the banking system.

How it generally works

1. The exporter agrees payment terms with the overseas buyer.
2. The exporter and its bank decide on the payment or financing arrangement.
3. Goods are produced and shipped, and export documents are prepared.
4. Documents are presented and payment follows according to the arrangement.

Potential business use cases

• Selling agricultural or manufactured goods abroad.
• Funding the production of goods for a confirmed overseas order.
• Reducing the risk of non-payment by a buyer in a new market.

General documentation

Requirements vary by transaction, country and institution. Commonly requested items include:

• Sales contract or purchase order from the buyer
• Company registration and export-related registrations
• Commercial invoice, packing list, and transport documents
• Export documentation required locally, such as the NXP form where applicable in Nigeria
• Quality, origin, or phytosanitary certificates where relevant

Important considerations

• Buyers' country risk and payment behaviour should be assessed.
• Export proceeds may have repatriation requirements under local rules.
• Confirm current export procedures with your bank and the relevant authorities.

FAQs