Import Finance

Overview

Import finance helps a business pay for goods bought from abroad. It can include documentary credits, supplier credit, trade loans, or other arrangements that bridge the time between paying the supplier and selling the goods. Import rules in Nigeria and other countries can affect which documents and approvals are needed.

How it generally works

1. The importer agrees terms with the overseas supplier.
2. The importer's bank or financier is approached for the chosen arrangement.
3. Import documentation and any required approvals are prepared.
4. Payment is made as the arrangement provides once shipping documents are in order.

Potential business use cases

• Buying machinery, raw materials, or goods for resale.
• Dealing with a new overseas supplier who wants payment security.
• Managing cash flow while goods are in transit.

General documentation

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

• Proforma invoice from the supplier
• Company registration and tax documents
• Import documentation required locally, such as Form M where applicable in Nigeria
• Insurance and transport details
• Application forms for the chosen facility

Important considerations

• Foreign-exchange availability and rules can affect timing and cost.
• Customs duties, port charges, and inland transport add to the total cost.
• Check current local import requirements with your bank and the relevant authorities.

FAQs