Everything you need to know about. Payments

Transcription

1 Everything you need to know about Payments

2 Payments made easy Payments are what we do, and we ve become experts over the years. To make your life even easier and ensure your payments run like clock work, we ve put together a simple guide of everything you need to know. Payments involve three easy steps: 1. BOOKING YOUR CONTRACT 2. SENDING THROUGH THE CORRECT DOCUMENTS 3. PAYING FOR YOUR CONTRACT

3 1 Booking your contract Booking your contract note is easy; simply contact your dealer with the following information: 2 Currency you re looking to buy / sell Amount to transfer Date you need to pay by Are there cut-off times for booking my contract? We ll try being as accommodating as possible, but exchange controls has its limits. Please note the following cut-off times: SPOT (we ll transfer the foreign currency in two working days) - 17:00 Next Day (We ll transfer the foreign currency the next working day) - 12:00 Same Day (We ll transfer the currency the same day) - 09:00 The correct documents We ll worry about filling out the Balance of Payments form so you don t have to (we know time is money). To help make the process a smooth one, we ask that you note the following: All documents need to be sent to: documentsa@currenciesdirect. com, with the contract number in the subject line. The required documentation must be sent to the address above immediately after booking the deal with your dealer. FAQ s When do I get my SWIFT proof of payment? All SWIFT payment confirmations should be available by close of business on the maturity date. Although we ll move heaven and earth to process your payment on time, due to the complexities of the foreign exchange payments there may be delays from time to time.

4 DESCRIPTION PAID TO DOCUMENTS WE REQUIRED AT TIME OF TRADE DOCUMENTS WE REQUIRED AFTER TRADE Advance Payments - I haven t received the good Invoice stating Advance payment or payment before shipping or the terms on which payment is required NB: Must be a proforma or commercial invoice, no order / sales confirmations Once your goods arrive: Commercial Invoice Bill of Lading + Customs documents + SAD500 + Customs Release Notification & Customs Worksheet if applicable Open Payment - have received the goods Invoice + Bill of Lading + Customs documents + SAD500 + Customs Release Notification & Customs Worksheet if Applicable Payment for goods sent in advance Receiver of funds None Invoice + Customs documents received when goods were exported Payment for goods that have already been sent Receiver of funds Invoice + customs documents received when goods were exported Services Receiver of funds None Freight Forwarding Invoice or Debit note or Credit note Services Invoice - clear description of the service provided Letter of Credit Local bank where L/C is held Currency correspondent of local bank + Contact person at local bank + Reference number of L/C We also assist in all bespoke payments that require SARB / exchange control approval, including intercompany payments, business travel, dividend pay-outs and land arrangements. Please send all documents to documentsa@currenciesdirect.com Is it possible to receive my SWIFT sooner? Yes, the sooner you pay for your contract and send us your documents, the sooner we will be able to process your payment. We recommend paying for your contract and sending the documents straight away. When will my beneficiary receive their funds? This depends on the time-zone and beneficiary bank involved. Payments to Asia usually only reflect the day after value date. Payment to Europe and the USA usually reflect on the maturity date.

5 3 Paying for your contract This is the easy part, but it s also the part that leads to the most deals being rolled (and frustrations). Don t worry, once you ve read the below you wont miss another payment. South African banks use EFT s (electronic fund transfer) as the primary method of transferring funds from one bank to another. Unfortunately EFT s are not instant (despite popular belief). EFT s work as follows: All rands transferred before 15:30 reflect the next working day All rands transferred after 15:30 reflect in two working days With this in mind, we now know that all payments must be made by: SPOT - 15:00 before the maturity date of the contract Next Day - 15:00 before the maturity date of the contract Same Day - We require funds on account at time of booking There you have it; late payments should be a thing of the past What if I pay late? If funds are not on account by maturity date (as per Paying for your contract section above), your contract will be rolled to SPOT, with a penalty fee of R500 being charged to your account. Failure to pay after the new value date will result in your contract being sold back at the prevailing market rate (which will result in cash flows for your account). What if I need to cancel my contract? All contracts are sold back at the prevailing market price, with any profit / loss for your account. In the case of a loss, you will need to fund your account for the loss within two working days.

6 Cape Town office Johannesburg office +27 (0) (0) Office 1405, 14th Floor, Portside, 4 Bree Street, Cape Town, 8001, South Africa Office 19, Block 4, The Business Exchange 150 Rivonia Road, Sandton, Johannesburg, 2057, South Africa This document is for information purpose only. The information contained in this document is not intended as an offer, and it should not be construed as an advice, invitation, solicitation, recommendation or inducement to engage in any investment, hedging, arbitrage or speculative activity. In particular, Currencies Direct PTY is not acting as your financial advisor or agent. Before considering entry into a transaction(s) of the types mentioned herein, any prospective transaction participant should consult with their own legal, regulatory, tax, financial or accounting advisors to the extent they consider it necessary and make their own independent investment, hedging and/or trading decisions (including decisions regarding the suitability of this/these transaction(s) for their own benefits). This/these transaction(s) involves risks, and unless specified otherwise returns, performance and capital are not guaranteed. Moreover, past performance is not indicative of the future.