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Trade Solutions for your business
Win Contracts
HEK can help you win import/export contracts by providing attractive financing terms using Financial Instruments.
Fulfill Orders
HEK supports your business by providing collateral so you can take on and fulfill orders with confidence.
Get Paid
How it Works
Case Study
A client engaged with us to help with their Trade Finance needs. After deep analysis of their business and financial standings HEK International Ltd structured the following:
A Stand By Letter of Credit (SBLC) and a line for Letters of Credit (LCs) for utilization as below:
SBLC: USD 3Million LC Limit: USD 1Million
To replace the securities held as collateral for the financing lines held with the customer’s current Bankers for the following reasons:
– Ability to negotiate for better pricing for the running facilities. This is because the SBLC is considered to be better quality collateral. The facilities are currently priced at UGX 20% per annum and wish to have this reduced to utmost 16%.
– Ability to increase their facility lines because the discounting factors for SBLCs are higher (average at 95% on the local Banking industry) compared to debentures, landed collateral and all other forms of collateral apart from cash which is discounted to 80%.
– SBLC limit to facilitate in the customer’s working capital needs. This shall be majorly to their equipment and ICT consumables suppliers for specific supply contracts with bullet repayment; Enjoying credit lines from their suppliers iii) Enjoy advantages that come with economies of scale iv) Mitigate risks that come with trading on open account among others.
Case Study
A client engaged with us to help with their Trade Finance needs. After deep analysis of their business and financial standings HEK International Ltd structured the following:
A Stand By Letter of Credit (SBLC) and a line for Letters of Credit (LCs) for utilization as below:
SBLC: USD 3Million LC Limit: USD 1Million
To replace the securities held as collateral for the financing lines held with the customer’s current Bankers for the following reasons:
- Ability to negotiate for better pricing for the running facilities. This is because the SBLC is considered to be better quality collateral. The facilities are currently priced at UGX 20% per annum and wish to have this reduced to utmost 16%.
- Ability to increase their facility lines because the discounting factors for SBLCs are higher (average at 95% on the local Banking industry) compared to debentures, landed collateral and all other forms of collateral apart from cash which is discounted to 80%.
- SBLC limit to facilitate in the customer’s working capital needs. This shall be majorly to their equipment and ICT consumables suppliers for specific supply contracts with bullet repayment; Enjoying credit lines from their suppliers iii) Enjoy advantages that come with economies of scale iv) Mitigate risks that come with trading on open account among others.
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Our team of experienced and talented specialist share a breadth of knowledge and expertise that make us well-suited for most any kind of case.
