Product & Services

Citi offers a range of financing solutions to meet your working capital, asset and other financing requirements. Our team of banking professionals includes specialists chosen for their superior understanding of the unique requirements of your industry.

Security of receivables repayment and sales financing

This product is designed for trade transactions with deferred payments up to 180 days, and where the receivables are insured through Export Sales Cover or the Domestic Sales Cover of Credit Guarantee Insurance Corporation, South Africa's largest Trade Insurance Agency. This Product provides the ability to insure the receivables and obtain financing for domestic and foreign trade transactions evidenced by invoices.
Financing is arranged through the purchase of given receivables and the assignment of all rights under the Credit Guarantee Insurance Corporation insurance policy to Citi South Africa, is a key condition of the product.

The solution is financing the Seller based on invoice discounting, and is especially useful for revolving transactions. The financing is based on limited recourse to the Seller. The recourse is exercised only in the following situations:

  • Violation or non-execution of the contract obligations by the Seller
  • Violation or non-execution of the Credit Guarantee Insurance Corporation insurance policy by the Seller
  • Violation or non-execution of the obligations imposed by the assignment agreement of future indemnity from Credit Guarantee Insurance Corporation insurance policy

It should be noted that there is complete coverage for the key risk associated with trade, i.e. the commercial and non-commercial risk risks.
The Credit Guarantee Insurance Corporation policy which can constitute the basis for financing to be delivered within the within the product are:

  • Export comprehensive cover for Foreign Trade
  • Domestic Cover for Domestic Sales

As a dynamic business, effective management of your cash flow is critical in meeting your day-to-day business requirements in the most cost-efficient manner. Your overdraft will act as a transactional vehicle with a revolving credit facility, which is accessible through your Current Account and Electronic or Internet Banking facility.

A cash release loan is secured by a first cession of your debtors' book. It is structured as an overdraft with monthly adjustments to the limit, based on the size of your debtors' book.
Features:

  • Debtor's collection process remains with you
  • Facilities provided are not visible to your debtors
  • Makes use of the receivables portfolio approach (individual invoices are not discounted)
  • High value substitute for overdrafts
  • Up to 70% of the value of your debtors book may be financed

Term loans are specific non-revolving lines of credit, with tenors from 1 to 60 months. Term loans are particularly relevant where a specific amount of funding is required to finance short or long-term projects.

Citi's global coverage ensures an extensive distribution network, providing Corporate Customers with access to competitive offshore funding sources. An acknowledged leader in the Syndicated EuroLoan Market, having won numerous prestigious global awards*, Citi's Customers benefit from more than 50 years of experience and market credibility, ensuring that transactions are appropriately and professionally structured, launched and managed. General corporate purposes is one of the main uses of the funds raised. Given that this form of financing is typically raised for acquisition-funding and capex, Loan amounts are usually for a minimum of US$100 million and will be considered for Citi's Corporate Customers.