Mbabane – Standard Bank Eswatini has introduced a suite of trade finance solutions designed to help businesses across the Kingdom overcome cash flow challenges and take advantage of new opportunities. The bank said the facilities are particularly aimed at bridging gaps that arise when companies secure contracts, receive large purchase orders or face delays in invoice payments.
The bank explained that the three products — Contract Finance, Purchase Order Finance and Invoice Discounting — were developed to meet the needs of micro, small and medium enterprises (MSMEs) as well as established firms in both the private and public sectors.
Contract Finance
This facility targets companies that have secured a contract to deliver services or works with reputable entities. Through Contract Finance, businesses can access up to 50 percent of the contract value once the agreement is confirmed by the counterparty.
The loan is structured around project timelines to ensure that companies do not delay procurement or delivery while waiting for payments. Repayment is managed through assigned receivables.
To qualify, applicants must have banked with Standard Bank for at least six months, operated in their current line of business for 12 months, and maintain a clean credit record with no unpaid invoices or contracts.
Purchase Order Finance
According to Standard Bank, many small businesses in Eswatini struggle to fulfil large orders due to limited cash flow. The Purchase Order Finance solution is designed to address this by paying suppliers upfront, ensuring goods are delivered without delay.
Beneficiaries include manufacturers sourcing raw materials, distributors needing stock for client orders, and service providers with contractual delivery commitments.
The approval process is described as quick and efficient, relying primarily on the strength and credibility of the purchase order rather than demanding financial statements or long-term projections. The bank noted that this makes the facility ideal for enterprises that are building credit history while working with credible buyers.
Invoice Discounting
Invoice Discounting offers businesses access to up to 70 percent of the value of invoices before clients settle their accounts, unlocking immediate working capital. The facility is structured around the receivables cycle and allows companies to continue operating smoothly while waiting for payments.
This solution is suitable for firms that need short-term funding to bridge the gap between service delivery and payment. It can be used for ordering new goods, managing operational expenses or ensuring continuity of services.
Businesses seeking Invoice Discounting are required to provide registration documents, bank statements from other financial institutions, financial statements, cash flow records, a favourable credit history and, in some cases, additional documentation depending on the borrower’s circumstances.
Bank’s position
Standard Bank Eswatini said the trade finance products reflect its understanding of the realities faced by local businesses, particularly those seeking to expand in a tough economic environment. The bank said every company has unique financing needs, and the new solutions are intended to power growth by offering timely access to capital.
“The journey of each business is different, and so are its financing needs. Whether a company is scaling up for a major order, executing a strategic contract or simply managing everyday challenges, our solutions are designed to unlock opportunities and keep businesses moving,” the bank said in its statement.
Access to the facilities
Businesses interested in the trade finance solutions can contact their relationship managers directly, call the bank at 2517 5310, or visit their nearest Standard Bank branch. More information is also available on the bank’s official website, www.standardbank.co.sz.
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