How it Works

Trade Finance

Standard Cash Flow and Operational Cycle

The cash flow cycle of the typical importer in South Africa is characterised by long lead times before goods are distributed and then an equally long wait for customer payments to be received. Research puts this at an average of 115 days for capital outlay between the foreign supplier payment and accounts receivable, placing strain on the business’s cash flow.

The Introduction of Turners Trade Finance into the Financial Supply Chain

Introducing Turners Trade finance eliminates the burden of financing the process from the business’s cash flow. The supplier is paid upfront, allowing the customer to negotiate an early settlement discount to offset the local finance cost, as well as lock in the rate of exchange to fix margins. The 120-day terms provided means the product can be manufactured, imported, delivered, sold locally, and paid for before the customer settles the account with Turners Shipping.

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